Which of the following is not a possible measure of divisional invested capital?
A) Total assets
B) Stockholders' equity
C) Total assets less current liabilities
D) Total productive assets

Question

Quizplus · Accepted Answer

Stockholders' equity is not a measure of divisional invested capital because it represents the owners' claim on the business after all liabilities have been subtracted from assets, and does not directly reflect the capital invested in a specific division's operations. Divisional invested capital typically focuses on assets directly employed in the division's operations, such as total assets, total assets less current liabilities, or total productive assets.

Which of the Following Is Not a Possible Measure of Divisional