Which of the following statements about residual income is
A) Residual income = Operating Income - Sales
B) Residual income = Operating Income - Operating Assets
C) Residual income is the amount of income in excess of a target or desired return on investment
D) None of these.

Question

Quizplus · Accepted Answer

Residual income is calculated as the income generated above the minimum required return on investment, not simply operating income minus sales or operating assets.

Which of the Following Statements About Residual Income Is