AO2-3 marks AO3-3 marks
A02
- TBTS can find it useful to use these ratios as they can see it increases from 0.75 in 2018 to 0.88 in 2020
- TBTS can use it to see that they may need to take out any short-term finance for new projects such as the range of new toys for 4-year-olds
A03
- This can help TBTS see if they have enough cash to cover any short-term debts to creditors such suppliers of toys and help them to keep a good relationship with the suppliers by paying on time.
- The ratios show they need to be cautious as each year the acid test ratio is below 1
(6)
Level
Mark
Descriptor
0
No Rewardable material.
Level 1
1-2
- Limited application of knowledge and understanding of business concepts and issues to the business context. (AO2)
- Attempts to deconstruct business information and/or issues, finding limited connections between points. (AO3)
Level 2
3-4
- Sound application of knowledge and understanding of business concepts and issues to the business context although there may be some inconsistencies. (AO2)
- Deconstructs business information and/or issues, finding interconnected points with chains of reasoning, although there may be some logical inconsistencies. (AO3)
Level 3
5-6
- Detailed application of knowledge and understanding of business concepts and issues to the business context throughout. (AO2)
- Deconstructs business information and/or issues, finding detailed interconnected points with logical chains of reasoning. (AO3)