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

Question

Quizplus · Accepted Answer

Financial managers use the balance sheet and income statement to calculate ratios, as these two statements provide information on a company's assets, liabilities, revenues, and expenses. The prospectus and operating budget provide information on future plans and projections, while the statement of cash flows provides information on the sources and uses of a company's cash. Pro forma statements are future projected financial statements and may not be readily available to financial managers.

The Key Numbers That Financial Managers Use to Calculate Ratios