Which of the Following Elements Is Not Used in the Calculation

question 59

Multiple Choice

Which of the following elements is not used in the calculation of economic value added for an investment center?

• A) An investment center's after-tax operating income.
• B) An investment center's total assets.
• C) An investment center's return on investment.
• D) An investment center's current liabilities.
• E) A company's weighted-average cost of capital.

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Definitions:

General Journal

The general journal is an accounting ledger in which all types of transactions are initially recorded, formatted by date, before being transferred to specific accounts in the general ledger.

Landscaping Services

Professional services that encompass the planning, designing, and maintenance of outdoor and garden spaces.

Consulting Services

Professional services provided by experts in a particular field to advise businesses or individuals in specific areas, such as management, technology, or finance.

Cash Payment

A financial transaction where an exchange of money occurs to settle a debt or purchase goods or services.