Which of the following will not result in an increase in return on investment (ROI), assuming other factors remain the same?
A) A reduction in expenses.
B) An increase in net operating income.
C) An increase in operating assets.
D) An increase in sales.

Question

Quizplus · Accepted Answer

An increase in operating assets will result in a decrease in ROI, as ROI is calculated by dividing net operating income by total assets. Therefore, increasing the denominator (operating assets) will decrease ROI.

Which of the Following Will Not Result in an Increase