Question

which of the following would not be included in operating assets in return on investment calculations??...

which of the following would not be included in operating assets in return on investment calculations??

A cash

B accounts receivable

C equipments

D factory building rented to another company

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Answer #1

Operating assets are assets used for regular operations of a business and are required for generation of revenue

Operating assets include Cash, Accounts receivable, prepaid expenses, Fixed assets and the like

As per above definition, Cash, accounts receivable and equipments (Fixed assets) are part of operating assets as they are used to generate revenue

Factory building rented to another company is not an operating asset as renting of property is not the business of a manufacturing entity having factory

So, option D is the correct option

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