balance Sheet Liquidity Flashcards
1
Q
1
A
Increased cash outflows there will be a lower net cash flow
2
Q
2
A
Lead to lower cash reserves
3
Q
3
A
Reduced current assets
4
Q
4
A
Reduced current ratio
5
Q
5
A
Putting the business at risk as they may not be able to keep up with payments for current liabilities
6
Q
6
A
Leading to the sale of non current assets
7
Q
7
A
Disruption to business operations