Low Liquidity Flashcards
(6 cards)
1
Q
1
A
Low liquidity (current ratio below 1 or acid test below 0.75)
2
Q
2
A
Low level of cash reserves
3
Q
3
A
Will struggle to pay suppliers and bank
4
Q
4
A
May be forced to sell non-current assets to pay day to day bills
5
Q
5
A
May lead to disruption to operations
6
Q
6
A
High risk of failure
