In Computing ROI Land Held for Future Use

question 125

Multiple Choice

In computing ROI land held for future use

• A) will hurt the performance measurement of an investment center's manager.
• B) is important in evaluating the performance of a profit center manager.
• C) is included in the calculation of operating assets.
• D) is considered a nonoperating asset.

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Definitions:

Legal Costs

Expenses incurred due to legal services, which can include lawyer fees, court fees, and other related expenses.

Intangible Assets

Non-physical assets owned by a firm, such as copyrights, patents, trademarks, and goodwill, that have value and can generate future economic benefits.

Balance Sheet

An accounting document that lists a business's assets, liabilities, and the equity of its shareholders at a specific date.

Goodwill

An intangible asset that arises when a business is acquired for more than the fair value of its net assets, representing the company's reputation, customer relationships, and other unquantifiable factors.