Residual Income Is a Performance Evaluation That Is Used in Conjunction

question 50

Multiple Choice

Residual income is a performance evaluation that is used in conjunction with,or instead of,return on investment (ROI) .In many cases,residual income is preferred to ROI because (CIA adapted)

• A)Residual income is a measure over time,while ROI represents the results for one period.
• B)Residual income concentrates on maximizing absolute dollars of income rather than a percentage return as with ROI.
• C)The imputed interest rate used in calculating residual income is more easily derived than the target rate that is compared to the calculated ROI.
• D)Average investment is employed with residual income while year-end investment is employed with ROI.

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Definitions:

Cardiac Arrest

An abrupt loss of heart function, breathing, and consciousness, typically resulting from an electrical disturbance in the heart.

CPR

Cardiopulmonary Resuscitation, an emergency procedure that combines chest compressions with artificial ventilation to manually preserve intact brain function until further measures are taken to restore spontaneous blood circulation and breathing in a person who is in cardiac arrest.

Electrical Shock

An injury caused by electric current passing through the body.

Cardiovascular Disease

A class of diseases that involve the heart or blood vessels, including coronary artery disease, hypertension, heart failure, and stroke.