Which of the Following Is the Correct Formula for Calculating

question 61

Multiple Choice

Which of the following is the correct formula for calculating residual income?

• A)Weighted Average Cost of Capital - Net Operating Profit After Tax
• B)Operating income - Minimum acceptable operating income
• C)Historical cost of assets - Accumulated depreciation
• D)Operating income ÷ Average assets

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Definitions:

Fragrant

Fragrant refers to having a pleasant or sweet smell, commonly associated with flowers, plants, and certain chemical compounds.

Cyclohexane

A saturated hydrocarbon with the chemical formula C6H12, commonly used as a solvent or in the manufacture of other chemicals.

Methylcyclohexane

A saturated hydrocarbon with the formula C7H14, characterized by a methyl group attached to a cyclohexane ring, used as a solvent and in organic synthesis.

Cycloheptane

A cyclic alkane with the molecular formula C7H14, consisting of a ring of seven carbon atoms.