The ROI calculation will indicate:
A) the percentage of each sales dollar that is invested in assets.
B) the sales dollars generated from each dollar of income.
C) how effectively a company used its invested capital.
D) the invested capital generated from each dollar of income.
E) the overall quality of a company's earnings.

Question

Quizplus · Accepted Answer

ROI, or Return on Investment, measures how effectively a company has used its invested capital to generate profits. It is a performance metric used to evaluate the efficiency of an investment or compare the efficiency of several different investments.

The ROI Calculation Will Indicate