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A look at the balance sheet, an important accounting document that
analyses what the business owns and what it owes.
You should be able to explain the relationship
between the components of a balance sheet, i.e. net current assets
(working capital) and net assets
You should be able to calculate and use the current ratio
and acid test ratio to inform decisions relating to the liquidity
of the business
You should also be able to calculate and use Return on Capital
Employed (ROCE) to inform decisions relating to the performance
(profitability) of the business
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