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All of the following are attributes of the ROPI model except: ROPI is falsely perceived as...

All of the following are attributes of the ROPI model except:

ROPI is falsely perceived as influenced by accrual accounting policies.

ROPI utilizes both the balance sheet and the income statement, capturing information in accrual accounting.

ROPI model is accurately perceived as influenced by accrual accounting policies.

ROPI is immune from the effects of differing accounting policies.

None of the above

why?

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Answer #1

A ROPI is falsely perceived as influenced by accrual accounting policies.

Residual Operating Income valuation model does not get affected by accrual accounting policies or differing accounting policies

does making the value unaffected.

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