The return on investment measure of performance:
A)is never as important a measure of management effectiveness as the amount of net income.
B)relates dividends paid to the entity's assets.
C)is calculated using net income as the amount of return.
D)is calculated by dividing average assets for a period by the amount of net income for the period.

Question

Quizplus · Accepted Answer

Return on investment (ROI) is a measure of performance that calculates the return (net income) as a percentage of the investment (typically assets or equity). It is calculated using net income as the amount of return.

The Return on Investment Measure of Performance