Question

assuming that sales and operating income remain the same, which of the following statements about a company's return on investment is correct? multiple choice it will increase if operating assets increase. it will decrease if operating assets decrease. it will decrease if turnover decreases. it will decrease if turnover increases.

Answer 1

If sales and operating income remain the same, return on investment will decrease if turnover increases.

Step-by-step explanation:

If sales and operating income remain the same, return on investment will decrease if turnover increases. Return on investment is a financial metric that measures the profitability of a company's investment. It is calculated by dividing the company's operating income by its total assets. When turnover increases, it means that the company's assets are being used more efficiently, resulting in a higher return on investment.