A Savings Ratio Calculated from an Income and Expense Statement

question 108

Multiple Choice

A savings ratio calculated from an income and expense statement represents the:

• A) percentage of gross income saved.
• B) ability to cover immediate debt when there is an interruption in income.
• C) percentage of after-tax income saved.
• D) percentage of tax-deferred income earned annually.
• E) percentage of asset value salvaged.