If Division Q's operating income was $60,000 and invested assets amounted to $400,000, the rate of return on investment calculated would be 15%.

Question

Quizplus · Accepted Answer

The rate of return on investment can be calculated by dividing the operating income by the invested assets and multiplying by 100.

Rate of Return = (Operating Income / Invested Assets) * 100
Rate of Return = ($60,000 / $400,000) * 100
Rate of Return = 0.15 * 100
Rate of Return = 15%

Therefore, the statement is true.

If Division Q's Operating Income Was $60,000 and Invested Assets