Liquidity and gearing ratios 0.0 / 5 ? Business StudiesFinancial PlanningA2/A-levelAQA Created by: Georgew298Created on: 10-04-16 13:00 Current ratios Measures relationship between current assets and current liabilities 1 of 5 Acid test ratios Measures the businesses liquidity position by looking at current assets and liabilities (but omits stock) 2 of 5 Gearing ratios Looks at the long term stability of the business and the risk of investment within the business 3 of 5 - - 4 of 5 - - 5 of 5
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