The return on investment measure of performance: Multiple Choice О is calculated by dividing average total assets for a period by the amount of net income for the period. О is calculated using net income as the amount of return. О relates dividends paid to the company's average total assets. О is never as important a measure of management effectiveness as the amount of net income.

The return on investment measure of performance: Multiple Choice О is calculated by dividing average total assets for a period by the amount of net income for the period. О is calculated using net income as the amount of return. О relates dividends paid to the company's average total assets. О is never as important a measure of management effectiveness as the amount of net income.

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter6: Accounting For Financial Management

Section: Chapter Questions

Problem 6Q: Explain the difference between NOPAT and net income. Which is a better measure of the performance of...

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Return on Investment and Residual Income are Performance Measurements that both provide managers financial/accounting information in terms of percentages. TRUE FALSE
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