Indicate Whether Each of the Following Statements About Return on Investment

question 121

Short Answer

Indicate whether each of the following statements about return on investment is true or false.
Return on investment for a division is calculated by dividing net income by total assets.______
Using book value as the valuation base for calculating return on investment can distort ROI and cause motivational problems among managers.______
Accounts receivable are not included in operating assets for the purpose of calculating return on investment.______
Return on investment could be calculated based on historical cost or replacement cost for a division's assets.______
Return on investment can be calculated by multiplying margin by turnover.______

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Definitions:

Multiple-Choice Questions

A type of question that presents respondents with several answers, from which they must select the correct option.

Replicability

The ability of an experiment or study to be duplicated or reproduced to verify results.

Comparator Research

A type of research that involves comparing the effectiveness, benefits, and drawbacks of two or more products or strategies.

Observational Research

A method of collecting data by watching subjects' behaviors, actions, or proceedings in their natural setting without interference or manipulation by the researcher.