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When calculating a ratio with numbers from the balance sheet and income statement, why must you use the balance sheets from the beginning and end

When calculating a ratio with numbers from the balance sheet and income statement, why must you use the balance sheets from the beginning and end of the period covered by the income statement?
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Because the income statement represents all transactions between two points in time.
Because the balance sheet represents the separate points in time.
Both are correct.
Neither are correct.

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