Skip to main content

Back to the full dot-point answer

EnglandAccountingQuick questions

3.1 Financial accounting

Quick questions on Ratio analysis: profitability, liquidity and efficiency ratios - AQA A-Level Accounting

2short Q&A pairs drawn directly from our worked dot-point answer. For full context and worked exam questions, read the parent dot-point page.

What is q1?
Show answer
A business has current assets 60,00060{,}000, inventory 20,00020{,}000 and current liabilities 30,00030{,}000. Calculate the acid test ratio. [2 marks] 60,000−20,00030,000=1.33\dfrac{60{,}000 - 20{,}000}{30{,}000} = 1.33.
What is q2?
Show answer
State two limitations of ratio analysis. [2 marks] For example it uses historic data and ignores qualitative factors.

Have a question we have not covered?

This dot-point answer is short enough that we have not extracted many short questions yet. Read the full dot-point answer or ask Mo, our study assistant, in the chat for follow ups.

All AccountingQ&A pages