Which of the Following Statements Regarding ROI Computations Istrue

question 110

Multiple Choice

Which of the following statements regarding ROI computations istrue?

• A) Net income after interest and taxes is most frequently used as the measure of income in the ROI formula.
• B) The fair market value of assets without regard to depreciation is used as a measure of operating assets in the ROI formula.
• C) Assets used in the ROI formula are generally measured as an average of beginning and end of period numbers.
• D) All assets, including those that are idle or held for resale, are included in the ROI formula.