Using Gross Book Value as an Investment Base Will Result

question 93

True/False

Using gross book value as an investment base will result in a lower ROI than using net book value as an investment base.

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Definitions:

Balance Sheet

An accounting report that presents the value of a corporation's assets, obligations, and equity of its investors as of a particular moment.

Operating Activities

Activities that involve the primary operations of a company, such as selling products and providing services.

Statement Of Cash Flows

A financial statement that provides a summary of a company's cash inflows and outflows over a specific period.

Direct Method

A way of preparing the cash flow statement where actual cash flow information from the company's operations is used, rather than accrual accounting values.