Answered: Assuming that sales and expenses will…

Assuming that sales and expenses will remain unchanged, an increase in the level of assets causes the return on investment (Rol) to Decrease O Remain unchanged Be erratic and unpredictable Increase

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

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Assuming that sales and expenses will remain unchanged, an increase in the level of assets causes the return on investment (RoI) to

Assuming that sales and expenses will remain unchanged, an increase in
the level of assets causes the return on investment (Rol) to
Decrease
Remain unchanged
Be erratic and unpredictable
Increase

Formula Formula ROI (%) = Net Income Principal Amount × 100

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