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Cambridge IGCSE Business Studies

5.5.2Liquidity

Liquidity in Cambridge IGCSE Business Studies: what the syllabus expects you to know, the learning objectives and how to practise.
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Learning objectives

What the syllabus expects you to be able to do.

  1. 5.5.2.1Explain liquidity and calculate and interpret the current ratio and the acid test ratio.

Lessons

  • Liquidity ratios: current ratio and acid test

    30 min

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Sample question

A sample question on this topic. Answer it, check it, then read the worked answer.

Liquidity: sample question

1 mark

Why is inventory left out of the acid test ratio?

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Turn Liquidity into a strength.

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