Circulating Assets, the total monetary resources of socialist enterprises invested in turnover funds and circulating funds. In the process of reproduction, certain parts of circulating assets simultaneously operate at various stages and in various forms of the circuit of funds. In production they assume the form of production reserves and work in process, while in the process of circulation they assume the form of ready products and finances. As to the formation source the circulating assets of socialist enterprises are divided into their own and loaned assets. The former are the resources which the state allots to the enterprise when it is established, and which are further replenished. The total volume (rate) of the enterprise’s own circulating assets is set for the enterprise by the top-level body, and may be changed only if there are changes in the enterprise’s production plan. The profit that the enterprise receives is the principal source of financing the increase of the enterprise’s own circulating assets. This makes the enterprise economically interested in improving its economic activity. Alongside its profit, the enterprise, to replenish its own circulating assets, utilises what are called stable liabilities which are equated to the enterprise’s own assets. In this category are: minimal arrears to industrial and office workers on their wages, payments for social security, etc. Loaned assets include bank credits. Besides its own and loaned assets the enterprise’s turnover includes attracted finances. This is what is called credit arrears. The enterprise spends its loaned assets on temporary needs, and they have to be returned. Circulating assets are divided into rated and non-rated. In the first category are production reserves (raw, basic and ancillary materials, purchased semi-manufactures, fuel, packaging material, spare parts for repairs, objects of low cost and durability), work in process, ready products remaining in warehouses. In the non-rated circulating assets category are those on which no rates are set: delivered products, money means and finances on accounts. In practice, how efficiently circulating assets are used is measured by the turnover coefficient, which is the ratio of the value of products sold over the year to the average remainder of the circulating assets. The main factor in speeding up the turnover of assets is to reduce the time of production and circulation. Acceleration of the turnover and the rational use of circulating assets make it possible to release funds and use them for manufacturing additional products (see Turnover of Production Assets) .