Which of the Following Statements Is TRUE

question 368

Multiple Choice

Which of the following statements is TRUE?

• A) If private saving is greater than private investment, then the private sector has a surplus.
• B) If private investment is greater than private saving, then the private sector has a deficit.
• C) If private investment is greater than private saving, then either the government or net export sector must have a surplus.
• D) All of the above answers are correct.

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Definitions:

Receivable Turnover Ratio

A financial metric that measures how efficiently a company collects cash from its credit sales by comparing net credit sales with the average accounts receivable.

Cash Dividend

A payment made in cash to shareholders that is derived from a company's profits or reserves.

Times Interest Earned Ratio

A financial metric assessing a company’s ability to meet its interest obligations from its operating income.

Income Tax Payments

Income tax payments are the amounts of money a company or individual must pay to the government, based on the income earned over a tax period.