If Net Operating Income Is $70,000, Average Operating Assets Are

question 291

Multiple Choice

If net operating income is $70,000, average operating assets are $250,000, and the minimum required rate of return is 16%, what is the residual income?

• A) $11,200
• B) $40,000
• C) $110,000
• D) $30,000

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Definitions:

Information Technology

The employment of computers, storage systems, networking, and various physical devices, infrastructure, and procedures for the generation, processing, storing, securing, and sharing of all types of electronic data.

Communicate

The act of exchanging information, ideas, or feelings between individuals or groups, using various modes such as writing, speaking, or through digital platforms.

Coordination

The act of organizing and aligning different elements or activities so that they work together effectively towards a common goal.

IT

Information Technology, which involves the use of computer systems, software, and networks to store, retrieve, transmit, and manipulate data.