Quiz: Current Ratio - Calculation and Interpretation

WJEC Eduqas GCE A LEVEL in BUSINESS specification

11 Steps10 Questions

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Building on what you've learned about financial analysis, let's test your knowledge of the current ratio and its interpretation!

Multiple ChoiceInteractive

What does the current ratio measure?

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Multi-SelectInteractive

Which of the following are considered current assets? (Select all that apply)

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Fill in the BlankInteractive

A current ratio of {{blank0}}:1 means that for every £1 of liabilities, a business has £{{blank1}} of assets to cover them.

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MatchingInteractive

Match the items on the left with their correct pairs on the right

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Math EquationInteractive

Match the items on the left with their correct pairs on the right

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Multiple ChoiceInteractive

What does a current ratio below 1 indicate?

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Multi-SelectInteractive

Which of the following actions could improve a current ratio? (Select all that apply)

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Fill in the BlankInteractive

If current assets are £12,000 and current liabilities are £6,000, the current ratio is {{blank0}}:1.

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MatchingInteractive

Match the items on the left with their correct pairs on the right

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Multiple ChoiceInteractive

Why might a current ratio that is too high be a concern?

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