Financial ratios must use either two balance sheet accounts or two income statement accounts in the same ratio.

Name: Financial ratios must use either two balance sheet accounts or two income statement accounts in the same ratio.
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Financial ratios can mix balance sheet and income statement accounts to assess a company's financial health, such as the debt-to-equity ratio (total liabilities/total shareholders' equity) or the return on assets (net income/total assets).

Financial Ratios Must Use Either Two Balance Sheet Accounts or Two