current ratio and the debt ratio are computed numbers contained on the income statement.

Name: current ratio and the debt ratio are computed numbers contained on the income statement.
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Question

Quizplus · Accepted Answer

The current ratio and the debt ratio are liquidity and solvency ratios, respectively, calculated using numbers from the balance sheet, not the income statement. The current ratio uses current assets and current liabilities, while the debt ratio uses total liabilities and total assets.

Current Ratio and the Debt Ratio Are Computed Numbers Contained