Given That Return on Investment Measures Performance Over Time, the Invested

question 80

Multiple Choice

Given that return on investment measures performance over time, the invested capital would most appropriately be calculated by using:

• A) beginning of year assets.
• B) average assets.
• C) total assets.
• D) current assets.

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Definitions:

Financial Accounting

The field of accounting that focuses on providing information to external users to make informed economic decisions.

Productive

Relating to the efficiency or rate at which goods or services are produced, often measured in terms of output per time period.

Profit

The financial benefit realized when income earned is greater than the expenses, taxes, and costs incurred in generating that income.