Component 3 - Assets/Liabilities/Liquidity - Topic 5

1) Which of the following is the term for long term assets such as vehicles & buildings?

• Fixed Assets

• Current Assets

• Current Liabilities

• Long Term Liabilities

2) Which of the following is the term for short term debts that a business owes such as an overdraft?

• Fixed Assets

• Current Assets

• Current Liabilities

• Long Term Liabilities

3) Which of the following categories would highlight the inventories (stock) that a business owns?

• Fixed Assets

• Current Assets

• Current Liabilities

• Long Term Liabilities

4) Which of the following categories would highlight bank loans that a business owes?

• Fixed Assets

• Current Assets

• Current Liabilities

• Long Term Liabilities

5) Net current assets is calculated by

• Current liabilities - current assets

• Current assets / current liabilities

• Current Liabilities / Current Assets

• Current assets - current liabilities

6) This term refers to the money invested in a business

• Fixed Assets

• Current Assets

• Current Liabilities

• Long Term Liabilities

• Capital

7) Which term refers to the ease with which you can repay short term debts?

• Cash

• Cash Balance

• Liquidity

• Assets

8) When a business finds repaying short term debts difficult they have _____________.

• Cash

• A Cash Balance

• Good Liquidity

• Poor Liquidity

9) The current ratio measures..............................

• How easily short term debts can be repaid

• How easily assets can be repaid

• How large current liabilities are

• How large the assets of a business are.

10) The liquid capital ratio is measured by which of the following?

• Current Assets / Current Liabilties

• Current Liabilities / Current Assets

• Current Assets - Inventories (stock) / Current Liabilties

• Current Assets - Current Liabilities