Generally, firms with high levels of intangible assets tend to report (all else equal)
A)lower than actual ROI on their financial statements.
B)higher than actual ROI on their financial statements.
C)the same as the actual ROI on their financial statements.
D)No general relation exists.

Question

Quizplus · Accepted Answer

Firms with high levels of intangible assets tend to report higher than actual ROI on their financial statements because intangible assets are not recognized on the balance sheet and therefore do not affect the calculation of ROI.

Generally, Firms with High Levels of Intangible Assets Tend to Report