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| 1. Current ratio | a. Allows shareholders to judge their chance of receiving payment. |
| 2. Quick ratio | b. Helps a company decide its debt collection policy. |
| 3. Gearing | c. Shows if a business can pay its most urgent debts. |
| 4. Times interest cover | d. Shows profits compared to all a company’s capital. |
| 5. Dividend cover | e. Shows if funds are available to pay long-term debt costs. |
| 6. Stock turnover | f. Shows equity capital of a company compared to loan capital. |
| 7. Average collection period | g. Permits management to evaluate its use of assets. |
| 8. Profit margin | h. Provides a more accurate picture of short-term debt strength. |
| 9. Return on total assets | i. Shows profit compared to non-loan capital. |
| 10. Return on equity | j. Snows profits compared to sales earnings. |
XII After reading and translating the text (1) compare the main function of accounting in the times of command economy and nowadays; (2) explain the purpose of the Chart of Accounts and its relation to the Financial Statements; (3) name reports that comprise the annual financial statements; (4) prepare a brief summary of the text.
