Asked by Lesly Castañeda on Jul 24, 2024
Verified
Which of the following would not be included in operating assets in return on investment calculations?
A) Cash.
B) Accounts Receivable.
C) Equipment
D) Factory building rented to (and occupied by) another company.
Operating Assets
Assets that are used in the day-to-day operations of a business to generate revenue.
Return On Investment
A financial metric used to evaluate the efficiency of an investment, calculated as net profit divided by the cost of the investment.
- Understand the components and calculations of return on investment (ROI) for operating assets.
Verified Answer
AM
Amber McMunnJul 29, 2024
Final Answer :
D
Explanation :
The factory building rented to another company would not be included as an operating asset because it is not being used in the company's own operations to generate revenue.
Learning Objectives
- Understand the components and calculations of return on investment (ROI) for operating assets.