The residual income formula is:
A) net operating income minus the minimum required rate of return on operating assets.
B) net operating income minus the minimum required rate of return on total assets.
C) net income minus the minimum required return on stockholders' equity.
D) contribution margin minus the minimum required rate of return on operating assets.

Question

Quizplus · Accepted Answer

The Answer of The residual income formula is:
A) net operating income minus the minimum required rate of return on operating assets.
B) net operating income minus the minimum required rate of return on total assets.
C) net income minus the minimum required return on stockholders' equity.
D) contribution margin minus the minimum required rate of return on operating assets.

The Residual Income Formula Is