Given that ROI measures performance over a period of time, invested capital would most appropriately be figured by using:
A) beginning-of-year assets.
B) average assets.
C) end-of-year assets.
D) total assets.
E) only current assets.

Question

Quizplus · Accepted Answer

ROI, or Return on Investment, is calculated to assess the performance of an investment over a period. Using average assets over that period provides the most accurate reflection of the investment's performance, as it accounts for any fluctuations in asset value throughout the period.

Given That ROI Measures Performance Over a Period of Time