Quick questions on Financial statements, profitability, liquidity and gearing ratios - OCR A-Level Business

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?

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A firm has current assets of

\pounds 240{,}000

and current liabilities of

\pounds 160{,}000

. Calculate the current ratio. [2 marks]

What is q2?

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Analyse why a bank would look at a firm's gearing ratio before lending. [6 marks]

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