Asked by Scott Johnston on Apr 30, 2024
Verified
What additional information is needed to calculate the return on investment if income from operations is known?
A) invested assets
B) residual income
C) direct expenses
D) sales
Invested Assets
Assets that are purchased or acquired for the purpose of generating income or profit.
Income From Operations
This represents the earnings generated from the normal business operations of a company, excluding non-operating income and expenses.
Return On Investment
A measure used to evaluate the efficiency of an investment, calculated by dividing net profit by the cost of the investment.
- Attain insight into the return on investment concept and its computation method.
- Use financial indicators and formulas to appraise the functioning of a business.
Verified Answer
Learning Objectives
- Attain insight into the return on investment concept and its computation method.
- Use financial indicators and formulas to appraise the functioning of a business.
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