Which of the following statements is incorrect?
A) ROI is calculated as revenue divided by operating assets.
B) Operating assets are assets that are actually used to generate revenue.
C) Nonoperating assets are not included in the calculation of return on investment.
D) Operating assets include both current and long-term assets.

Question

Quizplus · Accepted Answer

ROI is typically calculated as income divided by investment, not revenue divided by operating assets. Revenue may be a component of income, but it is not the same as income.

Which of the Following Statements Is Incorrect