The two financial statements that provide much of the information to calculate the ratios that are used to assess an organization's financial health are the balance sheet and the income statement.

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The balance sheet provides a snapshot of a company's financial position at a specific point in time, including assets, liabilities, and equity, while the income statement shows the company's financial performance over a period, including revenues, expenses, and profits. These two statements are crucial for calculating financial ratios that assess liquidity, solvency, profitability, and efficiency.

The Two Financial Statements That Provide Much of the Information