What will happen to return on investment (ROI)if current assets decrease while everything else remains the same?
A)ROI will decrease.
B)ROI will increase.
C)ROI will not be affected.
D)We cannot determine the direction of the effect from the information provided.

Question

Quizplus · Accepted Answer

If current assets decrease while everything else remains the same, the total assets will decrease, leading to an increase in ROI, as ROI is calculated as net income divided by total assets.

What Will Happen to Return on Investment (ROI)if Current Assets