Deal of The Day! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: SAVE25
Free Preparation Discussions
MENU
AICPA Exam CPA-Business Topic 1 Question 53 Discussion
Actual exam question for
AICPA's
CPA Business Environment and Concepts exam
Question #: 53
Topic #: 1
[All CPA Business Environment and Concepts Questions]
Topic #: 1
The selection of the denominator in the return on investment (ROI) formula is critical to the measure's effectiveness. Which denominator is criticized because it combines the effects of operating decisions made at one level of the organization with financing decisions made at another organization level?
Suggested Answer:
D
Choice 'd' is correct. Shareholders' equity is the ROI denominator that has been criticized because it combines the effects of operating decisions made at another organization level.
Choices 'a', 'b', and 'c' are incorrect, per the above Explanation:.
Currently there are no comments in this discussion, be the first to comment!