Self-study 0. Task 20. Read the text and write the definitions of the words in bold. Preparation of the accounts

TASK 20.3 Match the definitions 1-4 with the examples of financial ratios a)-f) below.

1. 
   Liquidity ratios: these measure ability to turn assets into cash to pay short-term debts.
   
2. 
   Profitability ratios: these measure ability to generate profits.
   
3. 
   Leverage (Debt) ratios: these measure the degree to which a company relies on borrowed funds.
   
4. 
   Activity ratios: these measure the effectiveness of the use of resources from an operational point of view.
   

1. 
   Debt to owners' equity = Total liabilities / Total owners' equity
   
2. 
   Net profit margin = Net income before taxes / Net sales
   
3. 
   Working capital = Current assets / Current liabilities
   
4. 
   Return on equity = Net income after tax / Total owners' equity
   
5. 
   Inventory turnover = Cost of goods sold / Average inventory (mid point between inventory at beginning and ending of accounting period)
   
6. 
   Earnings per share = Net income after taxes / Number of shares issued
   

1 c, 3
2 b, e 4

TASK 20.4 Choose the correct verb to form correct passive sentences.
Complete these sentences below by putting the verb in brackets into the present perfect simple or present perfect continuous.
1. I (paint)I have been painting this room for six days now. It's a never-ending
job. 2. How long (you/know)have you knowing Mike? 3. I (had)have had this watch for twenty years. It's as accurate as it was the day I bought it. 4. I (never/be)have never been to Sweden. 5. How long you/live) have you lived in this house? 6. Hi, John. Sorry I'm late. I hope you (not/wait) haven’t been waiting long. 
7. So, Michael, what (you/do) have you done since I last saw you? Anything
interesting? 8. It (rain) has been raining all day today. 9. This strategy seems to be good. Sales of our products (increase) have increased for some time. 10.The manager (visit) have visited our branch office three times so far this year.