Ratio Analysis And Communication Formats: Liquidity Ratios Calculation Table Format (Copy)
Liquidity Ratios Calculation Table Format
Standard Liquidity Ratios Calculation Table (Exam-Preferred)
Liquidity Ratios – Calculation Table
| Ratio | Formula | Calculation | Result |
|---|---|---|---|
| Current Ratio | Current Assets ÷ Current Liabilities | xxxx ÷ xxxx | x : 1 |
| Acid Test (Quick) Ratio | (Current Assets − Inventory) ÷ Current Liabilities | (xxxx − xxxx) ÷ xxxx | x : 1 |
- Always Show Formula
- Always Show Working
- Final Answer Shown As Ratio (Not Percentage)
Written And Compiled By Sir Hunain Zia (AYLOTI), World Record Holder With 154 Total A Grades, 7 Distinctions And 11 World Records For Educate A Change AS Level Accounting Full Scale Course
Expanded Liquidity Ratios Working Table (High-Scoring Format)
Liquidity Ratios – Full Working Table
| Ratio | Figures Used | Working | Final Answer |
|---|---|---|---|
| Current Ratio | CA = xxxx, CL = xxxx | xxxx ÷ xxxx | x : 1 |
| Acid Test Ratio | CA = xxxx, Inventory = xxxx, CL = xxxx | (xxxx − xxxx) ÷ xxxx | x : 1 |
- Examiner Can Track Figures Easily
- Prevents Method Mark Loss
Current Assets Breakdown Working (Linked Format)
Current Assets Composition
| Item | Amount |
|---|---|
| Inventory | xxxx |
| Trade Receivables | xxxx |
| Cash And Bank | xxxx |
| Prepayments | xxxx |
| Total Current Assets | xxxx |
- Same Total Must Be Used In Ratio Calculation
Current Liabilities Breakdown Working (Linked Format)
Current Liabilities Composition
| Item | Amount |
|---|---|
| Trade Payables | xxxx |
| Accruals | xxxx |
| Bank Overdraft | xxxx |
| Proposed Dividends | xxxx |
| Total Current Liabilities | xxxx |
- Figures Must Match Statement Of Financial Position
Written And Compiled By Sir Hunain Zia (AYLOTI), World Record Holder With 154 Total A Grades, 7 Distinctions And 11 World Records For Educate A Change AS Level Accounting Full Scale Course
Liquidity Ratios Table Without Ratio Form (Common Error – Avoid)
| Ratio | Working | Answer |
|---|---|---|
| Current Ratio | xxxx ÷ xxxx | x |
- Must Be Written As x : 1
- Writing “x” Alone Loses Marks
Liquidity Ratios Without Table (Short Question Format)
Liquidity Ratios
- Current Ratio = Current Assets ÷ Current Liabilities = xxxx ÷ xxxx = x : 1
- Acid Test Ratio = (Current Assets − Inventory) ÷ Current Liabilities = (xxxx − xxxx) ÷ xxxx = x : 1
- Accepted In Short Structured Questions
- Clear Layout Still Required
Written And Compiled By Sir Hunain Zia (AYLOTI), World Record Holder With 154 Total A Grades, 7 Distinctions And 11 World Records For Educate A Change AS Level Accounting Full Scale Course
Liquidity Ratios Included At AS Level
- Current Ratio
- Acid Test (Quick) Ratio
Liquidity Ratios Never Used At AS Level
- Cash Ratio
- Defensive Interval Ratio
Written And Compiled By Sir Hunain Zia (AYLOTI), World Record Holder With 154 Total A Grades, 7 Distinctions And 11 World Records For Educate A Change AS Level Accounting Full Scale Course
Presentation Rules For Liquidity Ratios (Exam Scoring)
- Use Figures From Same Statement Of Financial Position
- Inventory Always Excluded From Acid Test Ratio
- Show Ratio In x : 1 Form
- Use Same Year Figures Consistently
- No Percentage Sign Used
Common Labels Used In Liquidity Ratio Tables
- Current Assets
- Current Liabilities
- Inventory
- Trade Receivables
- Trade Payables
Compact Liquidity Ratios Table (Emergency)
| Ratio | Working | Result |
|---|---|---|
| Current Ratio | xxxx ÷ xxxx | x : 1 |
| Acid Test Ratio | (xxxx − xxxx) ÷ xxxx | x : 1 |
One-Glance Exam Template
Liquidity Ratios
Balance Sheet Based
Show As x : 1
Inventory Excluded In Acid Test