Edexcel IGCSE Business Studies 3.5.2 Liquidity
Practise defining liquidity and linking cash availability to a business's ability to meet debts, compare years and judge financial health.
- Syllabus
- First assessment 2019
- Course
- Business Studies 4BS1
Exam points
- define liquidity as how easily assets can be turned into cash to meet short-term debts
- compare liquidity between years or businesses using current assets and current liabilities
3.5.2 Liquidity question 1
[Maximum number: 1]
One of TADS' objectives is to expand by giving lessons for different musical instruments. To do this it will need to analyse its financial position.
Define the term liquidity.
AO1 = 1 mark
Award 1 mark for the correct definition of liquidity.
- Liquidity is how easily a business can change its assets into cash (1).
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