Managing Finance (Edexcel 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 working capital?
What is the formula for working capital?
Current assets - Current liabilities
Which of these is NOT a current asset?
Which of these is NOT a current asset?
Factory machinery
Current liabilities must be paid within what timeframe?
Current liabilities must be paid within what timeframe?
One year
What is the ideal range for the current ratio?
What is the ideal range for the current ratio?
Between 1.5:1 and 2:1
What is the acid test ratio formula?
What is the acid test ratio formula?
(Current assets - Inventories) ÷ Liabilities
Why are inventories excluded from the acid test ratio?
Why are inventories excluded from the acid test ratio?
Stock can't pay bills; only cash can
What is 'shrinkage' in the context of stock?
What is 'shrinkage' in the context of stock?
Theft, usually by employees
What % of business failures result from poor cash flow according to the CBI survey?
What % of business failures result from poor cash flow according to the CBI survey?
21%
Which type of business can often operate with negative working capital?
Which type of business can often operate with negative working capital?
Large supermarket chains
In sale and leaseback, what happens to the asset?
In sale and leaseback, what happens to the asset?
Sold then leased back for continued use