Which of the following statements is true? 1. Return on investment (ROI) equals margin multiplied by sales. II. When used in return on investment (ROI) calculations, turnover equals sales divided by average operating assets. III. An advantage of using ROI to evaluate performance is that it encourages the manager to reduce the investment in operating assets as well as increase net operating income. Multiple Choice Both statements I and II are true. Both statements II and ill are true. Multiple Choice О Both statements I and II are true. Both statements II and III are true. О All of the statements are true. None of the statements are true.
Which of the following statements is true? 1. Return on investment (ROI) equals margin multiplied by sales. II. When used in return on investment (ROI) calculations, turnover equals sales divided by average operating assets. III. An advantage of using ROI to evaluate performance is that it encourages the manager to reduce the investment in operating assets as well as increase net operating income. Multiple Choice Both statements I and II are true. Both statements II and ill are true. Multiple Choice О Both statements I and II are true. Both statements II and III are true. О All of the statements are true. None of the statements are true.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
am. 125.
Transcribed Image Text:Which of the following statements is true?
1. Return on investment (ROI) equals margin multiplied by sales.
II. When used in return on investment (ROI) calculations, turnover equals sales divided by average operating assets.
III. An advantage of using ROI to evaluate performance is that it encourages the manager to reduce the investment in
operating assets as well as increase net operating income.
Multiple Choice
Both statements I and II are true.
Both statements II and ill are true.
Transcribed Image Text:Multiple Choice
О
Both statements I and II are true.
Both statements II and III are true.
О
All of the statements are true.
None of the statements are true.
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