Notes to the text

Ratio analysis анализ коэффициентов

Profitability прибыльность

Return on investment ratio коэффициент возвращения инвестиций

Answer the questions:

What is the purpose of accounting?

Who used the data provided by accounting firm?

What are the two types of records which most businesses prepare?

What can you know analyzing the income statement and balance sheet of a company?

What is the purpose of the ratio analysis?

What categories of ratio in finance do you know?

Vocabulary Exercises

Exercise 1.

An accounting helps … the activity of a business. Do you know the effect of you last … on financial condition of the firm. Accounting records provide … for stockholders, independent analysts. The second type of ratio helps the company … its current financial position. … is one of the two main records which most of the businesses prepare regularly. The … of the company includes real estate in California. I am sure of the … of this transaction. Our company’s current … is very high. They … from the association with that corporation.

to profit profit efficiency ownership to evaluate transaction data income statement to measure

Text 6. BOOKKEEPERS, ACCOUNTANTS AND CONTROLLERS