As a general rule, leased assets should be included as part of the calculation of "investment" (for calculating ROI and residual income) since they represent assets used:
A) As collateral to borrow funds.
B) To generate operating income.
C) To offset current operating expenses.
D) To reduce taxes.
E) To estimate earnings per share for a given period.

Question

Quizplus · Accepted Answer

Leased assets are used to generate operating income, and as such should be included in calculations of ROI and residual income.

As a General Rule, Leased Assets Should Be Included as Part