Which of the Following Is a Disadvantage of Both Residual

question 101

Multiple Choice

Which of the following is a disadvantage of both residual income and ROI?

• A)They are both absolute measures of return.
• B)They are both difficult to calculate.
• C)They both do not discourage myopic behaviour.
• D)They both result in a percentage.

---

Definitions:

Physical Count

Physical count refers to the actual counting of inventory items in a warehouse or store to verify stock levels.

Depreciation

An approach to apportioning the value of a tangible resource over the period it is expected to be used.

Market Value

The current price at which an asset or service can be bought or sold in the marketplace, which can fluctuate based on supply and demand dynamics.

Adjusted Trial Balance

A financial report that lists all accounts and their balances after adjustments have been made, ensuring the total debits equal the total credits.