Which financial statement(s)do you need to calculate the current ratio?
A)only the income statement
B)only the balance sheet
C)both the income statement and the balance sheet
D)both the statement of cash flows and the income statement

Question

Quizplus · Accepted Answer

The current ratio is calculated by dividing current assets by current liabilities, which requires data from the balance sheet. The income statement does not provide information on these specific accounts, and the statement of cash flows is also not necessary for this calculation.

Which Financial Statement(s)do You Need to Calculate the Current Ratio