What additional information is needed to calculate the rate of return on investment if income from operations is known?
A) invested assets
B) residual income
C) direct expenses
D) sales

Question

Quizplus · Accepted Answer

The rate of return on investment requires information about the amount of assets that were invested in order to generate the income from operations. Without knowing the invested assets, it is impossible to calculate the rate of return on investment. Residual income, direct expenses, and sales do not provide this necessary information.

What Additional Information Is Needed to Calculate the Rate of Return