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Which Statement Is True Regarding the Definition of an Investment

Question 5

Multiple Choice

Which statement is true regarding the definition of an investment, as it applies to return on investment (ROI) ?


A) All companies use long-term assets to comprise the investment in the ROI calculation.
B) All companies use total assets to comprise the investment in the ROI calculation.
C) Companies will use their own interpretation of which assets on the balance sheet comprise the investment in the ROI calculation.
D) All companies will use total assets, less intangibles to comprise the investment in the ROI calculation.

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