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Business- Theme 2 > 2.3.2 Liquidity​ > Flashcards

2.3.2 Liquidity​ Flashcards

1
Q

calculate Acid test ratio

A

(Current assets –Inventories) / Current
liabilities

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2
Q

Calculate Current Ratio

A

Current assets / Current liabilities

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3
Q

calculate Working capital

A

Current assets – Current liabilities

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4
Q

ways to improve liquidity​

A

Use of overdraft facilities ​

Negotiate additional short-term or long-term loans ​

Encourage cash sales and sell off stock ​

Sale and leaseback ​

Introduce fresh capital​

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Business- Theme 2 (14 decks)

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