The formula for the rate of return on investment is
A) Invested assets / Income from operations
B) Sales / Invested assets
C) Income from operations / Sales
D) Income from operations / Invested assets

Question

Quizplus · Accepted Answer

The rate of return on investment is calculated by dividing the income from operations by the invested assets. Therefore, option D is the correct choice. Option A calculates the return on assets, option B calculates the asset turnover ratio, and option C calculates the operating profit margin.

The Formula for the Rate of Return on Investment Is