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:

Binocular

Relating to, used by, or involving both eyes at the same time for obtaining visual perception.

Kinetic

Pertaining to motion, objects being in motion or the study of dynamics that involve motion.

Linear Perspective

Linear perspective is a technique in art and photography that creates the illusion of depth and distance on a flat surface, by having parallel lines converge towards one or more vanishing points on the horizon.

Aerial Perspective

A visual technique in art used to create the illusion of depth by depicting objects in the distance with less clarity and a bluer tone than those in the foreground.