The key numbers that financial managers use to calculate ratios usually come from which of the following financial statements of a firm?
A)pro forma statements
B)prospectus and operating budget
C)balance sheet and income statement
D)statement of cash flows

Question

Quizplus · Accepted Answer

Financial managers typically use key numbers from the balance sheet and income statement to calculate ratios. The balance sheet provides information on a company's assets, liabilities, and equity, while the income statement provides information on revenue, expenses, and net income. These two statements are crucial for calculating ratios that can help managers make informed financial decisions.

The Key Numbers That Financial Managers Use to Calculate Ratios