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)same as the actual ROI on their financial statements.
D)no general relation exists.

Question

Quizplus · Accepted Answer

Intangible assets are often not fully recognized on financial statements, leading to an understatement of assets and thus a lower reported ROI compared to the actual ROI.

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