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Return on Investment is measured is measured by dividing Operating Income by a. Gross Long Term...

Return on Investment is measured is measured by dividing Operating Income by

a. Gross Long Term Assets

b. Average Operating Assets

c. Gross Long Term Liabilities

d. Net Operating Assets



Select one:
a. Average Operating Assets
b. Net Operating Assets
c. Gross Long Term Assets
d. Gross Long Term Liabilities
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Answer #1

Answer:- Average operating asset

A profitability measure that evaluates the performance of a business by dividing net profit by net worth

Here,

Return on investment=Operating income ÷ Average operating assets

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