Question

which two financial statements does the operating cash flow ratio use?
the balance sheet and statement of cash flows
the statement of cash flows and income statement
the income statement and balance sheet

Explanation:

The operating cash flow ratio is calculated as Operating Cash Flow (from the statement of cash flows) divided by Current Liabilities (from the balance sheet). So it uses the balance sheet (for current liabilities) and the statement of cash flows (for operating cash flow). The other options don't provide the correct combination: the income statement isn't used for this ratio, so the option with income statement is incorrect.

Answer:

A. the balance sheet and statement of cash flows