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Return on investment = Blank______.Multiple choice question.Average operating assets ÷ Net operating incomeSegment revenue ÷ Net operating incomeNet operating income ÷ Average operating assetsNet operating income ÷ Segment revenue

Question

Return on investment = Blank______.Multiple choice question.Average operating assets ÷ Net operating incomeSegment revenue ÷ Net operating incomeNet operating income ÷ Average operating assetsNet operating income ÷ Segment revenue

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Solution

The correct answer is "Net operating income ÷ Average operating assets". This is the formula for calculating Return on Investment (ROI).

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Return on investment (ROI) is commonly expressed in each of the following ways, except Blank______.Multiple choice question.ROI = Net income / ((Beginning of year total assets + end of year total assets) / 2)ROI = Operating income / Average operating assetsROI = Net income / Average total assetsROI = Net income / Average stockholders' equity

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Select all that applyCommon expressions of return on investment (ROI) calculation include which of the following? (Choose every correct answer.)Multiple select question.Net income / Average total assetsOperating income / Average total assetsNet income / Average operating assetsOperating income / Average operating assets

Return on investment (ROI) Blank______.Multiple choice question.is calculated by dividing the average net income for two years by the average total assetsis normally calculated using net income as the measure of the returnis sometimes referred to as return on equity (ROE)is calculated by dividing net income earned during the year by the total assets at the end of the year

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