Quiz: Liquidity Ratios - Current Ratio
AQA A-Level Business (7132)
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Building on your understanding of financial performance, let's test your knowledge of liquidity ratios, focusing on the current ratio!
What does the current ratio measure?
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Which of the following are current assets? (Select all that apply)
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The formula for the current ratio is {{blank0}} divided by {{blank1}}.
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Match the items on the left with their correct pairs on the right
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A business has £50,000 in current assets and £25,000 in current liabilities. What is its current ratio?
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What is considered a healthy current ratio in most industries?
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Which of the following could improve a company's current ratio? (Select all that apply)
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Match the items on the left with their correct pairs on the right
If a business has a current ratio of 3, it means it has £3 in {{blank0}} for every £1 in {{blank1}}.
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What might a very high current ratio (e.g., above 3) indicate?
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