CAIE IGCSE Business Studies 7.4.1 Current Ratio Questions
Practise current-ratio questions by dividing current assets by current liabilities and presenting the result correctly for marks.
- Syllabus
- 2027–2029
- Course
- Business 0264
Exam points
- Use current assets divided by current liabilities to calculate the current ratio.
- Show working such as 120000÷150000 before writing the final answer clearly.
- Present the result as a ratio to 1 or as a number, such as 1.25:1 or 1.25.
CAIE IGCSE Business Studies 7.4.1 Current Ratio Questions question 1
HRO manufactures children's toys. It is a private limited company. The main objective of HRO 's shareholders is to increase profit. This might conflict with the objectives of other stakeholder groups, including its 30 suppliers. HRO's Managing Director knows that market research can help when making marketing decisions. The Finance Director is preparing HRO's statement of financial position. An extract is shown in Table 3.1.
Table 3.1
Calculate HRO's current ratio. Show your working.
Working:
Final answer:
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