3. Answer the following questions on the text

1. What indicators are most important for the users of financial data?

2. What are financial decisions based on?

3. What basic types of ratios associated with financial statements do

you know?

4. What does ratio analysis involve?

5. What is the difference between the balance sheet and the income statement?

6. Why doesn’t a single ratio provide sufficient information characterizing the overall performance of the firm?

4. Find the words with opposite meanings

1. above	a. below
2. better	b. decrease
3. correctly	c. deteriorate
4. cover	d. less
5. current	e. low
6. different	f. meaningless
7. high	g. mistakenly
8. improve	h. past
9. increase	i. (the) same
10. meaningfull	j. uncover
11. more	l. worse

5. Fill in the blanks with the following prepositions: by, for, from, into, of, on, over, to

1. Our analysis is based ____ the comparative data.

2. Managers use information _____ the financial performance of every unit of the company.

3. Important data can be obtained ______ the statement of cash flow.

4. Two types _____ analysis can be used.

5. The money was collected ______ our foreign customers.

6. The sum is equal _____ $100.

7. You must analyze the changes that have occurred _____ the last two years.

8. There was a slight fall in sales _______ the accounting year.

9. The ratio can be evaluated ______ using the average figure for the industry.

6. Read and translate vocabulary notes. Try to remember different meanings of the terms ‘ratio’ and ‘analysis’

1. A ratio is a relationship between two things when it is expressed in numbers or amounts.

Ex.: If there are ten boys and thirty girls in a room, the ratio of boys to girls is 1:3, or one to three.

2. Cash ratio is the ratio of the liquid assets of a company to its current liabilities.

Ex.: the rash of cash to deposits in a bank

3. Analysis is the process of considering something carefully or using statistical methods in order to understand it or explain it.

Ex.: We did an analysis of the way that government money has been spent in the past.

4. You use the expression in the final analysis or in the last analysis to indicate that the statement you are making is the most important or basic aspect of an issue. Examples:

a) I'm on the right track and I think in the final analysis people will understand that...

b) Violence in the last analysis produces more violence.

5. Analysis is the scientific process of examining something in order to find out what it consists of.

Ex.: They collect blood samples for analysis at a national laboratory…