Using Beginning Balances for the Investment Base in Computing Return

question 101

Multiple Choice

Using beginning balances for the investment base in computing return on investment (ROI) might encourage managers to acquire assets:

• A) early in the year and dispose of assets late in the year.
• B) early in the year and dispose of assets early in the year.
• C) late in the year and dispose of assets late in the year.
• D) late in the year and dispose of assets early in the year.

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Definitions:

Oblique Position

A body position where the individual is lying on their side with the body angled so that the front is neither completely facing upwards nor directly to the side.

X-Ray Beam

A stream of x-ray photons used in radiography and medical imaging to produce images of the internal structure of the body.

Bone Scan

A diagnostic imaging test to detect areas of increased or decreased bone metabolism.

Cancer

A broad group of diseases involving abnormal cell growth with the potential to invade or spread to other parts of the body.