One of the Advantages of Using Net Book Value to Measure

question 86

Multiple Choice

One of the advantages of using net book value to measure invested capital is that:

• A) it maintains consistency with the balance sheet prepared for external reporting purposes.
• B) it allows comparison of return on investment with different companies.
• C) the return on investment will increase steadily over time.
• D) it maintains consistency with the balance sheet prepared for external reporting purposes AND it allows comparison of return on investment with different companies.

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Definitions:

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