Statement of Financial Position & Ratios

Across

• 1. Compares current assets minus stick and current liabilities to measure the ability to repay short term debts in a crisis situation (when there might not be time to sell stock). Expressed as ?:1. 1:1 is acceptable as this shows a business can repay it (4, 4, 5)
• 4. Compares current assets and current liabilities to measure the ability to repay short term debts. Expressed as ?:1. Over 2:1 is ideal as this shows the business can pay its debts twice over. (7, 5)
• 5. Measure how well a business uses their resources. (10, 6)
• 6. Measures the amount of times a business re-stocks during the year. (4, 2, 5, 8)