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.

Question

Quizplus · Accepted Answer

A savings ratio calculated from an income and expense statement represents the percentage of after-tax income saved. This is typically calculated by dividing the total amount saved by the after-tax income.

A Savings Ratio Calculated from an Income and Expense Statement