Which financial statement(s)do you need to calculate the cash from operations to current liabilities ratio?
A)only the income statement
B)both the statement of cash flows and the balance sheet
C)both the income statement and the balance sheet
D)both the statement of cash flows and the income statement

Question

Quizplus · Accepted Answer

To calculate the cash from operations to current liabilities ratio, we need information from both the statement of cash flows and the balance sheet. The statement of cash flows provides information on cash flows from operations, while the balance sheet provides information on current liabilities. The income statement on its own does not provide enough information to calculate this ratio.

Which Financial Statement(s)do You Need to Calculate the Cash from Operations