Identify the formula for the rate of return on investment.
A) Invested Assets/Income From Operations
B) Sales/Invested Assets
C) Income From Operations/Sales
D) Income From Operations/Invested Assets

Question

Quizplus · Accepted Answer

The formula for the rate of return on investment is Income From Operations divided by Invested Assets. Therefore, the correct answer is D. Choices A and B are not relevant to the rate of return calculation, and Choice C has the wrong variables in the formula.

Identify the Formula for the Rate of Return on Investment