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10 September, 12:09

Some ratios use information only from the balance sheet for calculation purpose, while some ratios use information from the income statement as well as the balance sheet. Match the ratios to the relevant financial statements.

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  1. 10 September, 15:02
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    Check the explanation

    Explanation:

    1) Current Ratio = Balance sheet

    current ratio uses current assets and current liabilities of the balance sheet to calculate the ratio.

    2) Quick Ratio = Balance sheet

    Quick Ratio uses Quick assets and current liabilities of Balance sheet

    3) Total Assets Turn Over Ratio = Income statement and Balance sheet

    Total assets turn over ratio uses Net sales of Income statement and Avg Assets of Balance sheet to calculate the ratio

    4) Debt Equity Ratio = Balance sheet

    Debt Equity Ratio uses Debt and Equity of Balance sheet to calculate the Ratio

    5) Return on Equity = Income statement and Balance sheet

    Return on Equity uses Information of Net Income from Income statement and Shareholders Equity from Balance sheet to calculate the ratio.
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