Generally, firms with high levels of intangible assets tend to report (with other things being the same):
A) Lower than actual ROI
B) Higher than actual ROI
C) Same as the actual ROI
D) None of the above

Question

Quizplus · Accepted Answer

Firms with high levels of intangible assets tend to report higher than actual ROI. This is because intangible assets are not always reflected in the financial statements and may not be accurately valued. As a result, a firm's ROI may appear higher as a result of the undervaluation of intangible assets.

Generally, Firms with High Levels of Intangible Assets Tend to Report