Ratios (AQA A-Level Business): Quizzes
📚Quizzes
Practise the questions
10 questions from this quiz
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Practise the questions
10 questions from this quiz
What is the formula for calculating the current ratio?
What is the formula for calculating the current ratio?
Current Assets / Current Liabilities
What is the ideal range for a current ratio?
What is the ideal range for a current ratio?
Between 1.5 and 2
What does ROCE (Return on Capital Employed) measure?
What does ROCE (Return on Capital Employed) measure?
Profit generated from capital invested
What is the formula for ROCE?
What is the formula for ROCE?
Operating Profit/(Equity+Non-current Liab)×100
What is the formula for inventory turnover?
What is the formula for inventory turnover?
Cost of Sales / Cost of Average Stock Held
What does the payables days ratio measure?
What does the payables days ratio measure?
Days the firm takes to pay suppliers
What is the formula for receivables days?
What is the formula for receivables days?
Receivables / Sales Revenue × 365
Which strategy can improve liquidity?
Which strategy can improve liquidity?
Speeding up collection of customer debts
A firm has £30,000 current assets and £32,000 current liabilities. What is the current ratio?
A firm has £30,000 current assets and £32,000 current liabilities. What is the current ratio?
0.9375
What is aged receivables analysis used for?
What is aged receivables analysis used for?
Target most overdue accounts for payment