Average Operating Assets Is Used in the Numerator to Compute

question 78

True/False

Average operating assets is used in the numerator to compute turnover in an ROI analysis.

---

Definitions:

Investing Activities

Transactions involving the purchase and sale of long-term assets and investments, a component of a company's cash flow statement.

Financing Activities

Transactions that result in changes in the size and composition of the equity capital or borrowings of a company.

Direct Method

A cash flow statement preparation method that itemizes actual cash receipts and payments.

Operating Expenses

Costs associated with the day-to-day functions of a business, excluding costs of production or manufacturing.