BTEC business unit 3 15/5

Receivables =

• suppliers

• customers

• banks loans

Which would be non-current assets ? :

• vehicles

• stock (inventory)

• receivables

Which ratio looks at liquidity ?

• return on capital employed

• current ratio

• gross profit margin

• stock turnover

One way to improve profit (from the same number of sales) =

• increase your costs

• lower your selling price

• increase your expenses

• lower your costs

Accruals =

• bills paid in advance

• bills paid in arrears (owing)

Prepayments =

• bills paid in advance

• bills paid in arrears (owing)

A prepayment is a :

• current asset

• current liabilities

A bank overdraft is a :

• current asset

• current liability

Net current assets (working capital) =

• current assets x current liabilities

• current assets + current liabilities

• current assets - current liabilities

The liquid capital ratio :

• includes inventory

• excludes inventory