When computing ROI, it is may be appropriate to use average total assets as the denominator.

Name: When computing ROI, it is may be appropriate to use average total assets as the denominator.
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Quizplus · Accepted Answer

Using average total assets as the denominator in the ROI (Return on Investment) calculation is appropriate because it accounts for any changes in asset levels over the period being analyzed, providing a more accurate measure of investment efficiency.

When Computing ROI, It Is May Be Appropriate to Use