In the calculation of ROI,the most common measure for average operating assets is
A)Ending balance.
B)Beginning balance.
C)Appraised balance.
D)Average of the assets during the year.

Question

Quizplus · Accepted Answer

The most common measure for average operating assets in the calculation of ROI is the average of the assets during the year. This is calculated by adding the beginning and ending balance of the assets and dividing by 2. This measure takes into account any fluctuations in the asset balance during the year and provides a more accurate representation of the assets used to generate the ROI.

In the Calculation of ROI,the Most Common Measure for Average