Residual Income

question 136

Multiple Choice

Residual income:

• A) is an alternative to ROI for manager performance evaluation..
• B) is the amount of income earned in excess of a predetermined minimum level of return on assets.
• C) is equal to ROI - (Average operating assets * Minimum required rate of return).
• D) both A and B.

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Definitions:

Unclassified Balance Sheet

A balance sheet where assets, liabilities, and equity are not categorized into subgroups, presenting a simplified overview.