Theme 2 key terms (Managing finance) Flashcards
1
Q
liquidity
A
ability of a business to find cash it needs to pay bills
2
Q
current assets
A
asset that is quick and easy to turn into cash
3
Q
current liabilities
A
debt that must be paid within a year
4
Q
current ratio formulae
A
current assets divided by current liabilities
5
Q
acid test ratio formulae
A
(current assets - stock) divided by current liabilities
6
Q
working capital
A
current assets - current liabilities
