February 2025

Cambrige Notes: Principles of Accounting: Introduction to Liquidity Ratios

By |2025-02-12T09:23:33+02:00February 12th, 2025|Cambridge O Level/ IGSCE Accounts Notes, Notes, Ordinary Level Notes|

Cambridge IGCSE Accounting(0452)/O Level Principles of Accounts(7110) Notes: Introduction to Liquidity Ratios

  • Liquidity is a measure of how well a business can meet its short term obligations as and when they fall due
  • It is usually expressed in terms of how well the entity/business in question can convert its assets into cash
  • Short term obligations include amounts owed to […]
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Cambrige Notes: Principles of Accounting: Current Asset Ratio

By |2025-02-12T09:27:26+02:00February 12th, 2025|Cambridge O Level/ IGSCE Accounts Notes, Notes, Ordinary Level Notes|

Cambridge IGCSE Accounting(0452)/O Level Principles of Accounts(7110) Notes: Introduction to Liquidity Ratios: Current Asset Ratio

  • As pointed out in the introduction
  • One of the liquidity ratios that you need to be familiar with is the Current Asset Ratio
  • Like all liquidity ratios it measures how well a business will be able to settle its short term obligations as […]
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