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BTEC Business > Measuring Liquidity > Flashcards

Measuring Liquidity Flashcards

1
Q

Current Ratio

A

Current assets / Current liabilities

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2
Q

Liquid Capital Ratio

A

Current assets - Inventory / Current liabilities

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3
Q

Trade Payable Days

A

Trade payable / Credit purchase x 365

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4
Q

Trade Receivable Days

A

Trade receivable / Credit sales x 365

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BTEC Business (6 decks)

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