ROI Is the ____, Excluding the Initial Investment, Divided by the Investment

question 72

Multiple Choice

ROI is the ____, excluding the initial investment, divided by the investment value.

• A) sum of cash flows
• B) market value
• C) sum of principal payments
• D) asset value minus depreciation

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Definitions:

Income Statement

is a financial statement that provides a summary of a company's revenues, expenses, and profits over a specified period of time, showing how the net income is arrived at.

Operating Expenses

Expenses incurred during the regular operations of a business, excluding the cost of goods sold.

Cost of Goods Sold

The expenses directly linked to the manufacturing of the products a company sells, such as costs for materials and labor.

Work in Process Inventory

The expenses associated with goods that are still in the manufacturing stage, encompassing wages, raw materials, and indirect costs.