GK
ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Net worth
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Net fixed assets
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Operating expenses
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Shareholder’s investment
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Detailed explanation-1: -Return on Investment (ROI) A calculation of the monetary value of an investment versus its cost. The ROI formula is: (profit minus cost) / cost.
Detailed explanation-2: -RoFA stands for Return on Fixed Assets, or how much money the company makes in return for its assets. To calculate RoFA, divide current operational income by investment cost.
Detailed explanation-3: -How do you calculate ROI? There are multiple methods for calculating ROI. The most common is net income divided by the total cost of the investment, or ROI = Net income / Cost of investment x 100.
Detailed explanation-4: -We define return on investment as adjusted operating income (operating income plus interest income, depreciation and amortization and rent from continuing operations) for the fiscal year or trailing twelve months divided by average investment during that period.