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:

Nuts

Edible seeds encased in hard shells, often consumed as snacks or used as ingredients in cooking.

Utility Function

An equation that describes a consumer's preference for a set of goods and services, relating each bundle of goods to a level of utility.

Berries

Small, pulpy, and often edible fruits that are typically juicy, rounded, and brightly colored.

Nuts

Hard-shelled seeds of certain plants that are often edible and rich in nutrients, or a slang term to describe someone who is crazy or eccentric.