bt

Question 1

short term liabilities

Answer 1

Debts that are normally paid within a year / money owed that needs to be paid back within a year.For example, trade creditors, short term loans and overdraft payments

Question 2

current ratio

Answer 2

The current ratio is a measure of the liquidity of a business - it shows whether or not a business has sufficient levels of working capital to pay day-to-day expenses - the ideal ratio for the current ratio is usually 1.5 - 2.0.

Question 3

However, whether or not the current ratio is good depends on…

Answer 3

the average within the industry

Question 4

revenue from lob

Answer 4

255000 and 285000

Question 5

depreciation formula

Answer 5

original cost-residual value/useful life of asset(years)

Question 6

PED

Answer 6

%change in quantity demanded/%change in price

Question 7

-0.5 price elastic or inelastic

Answer 7

inelastic: 1% increase in demand = 0.5% decrease in demand

Answer 8

total current assets/total current liabilities