Question

The return on investment measure of performance is calculated using which of the following as the amount of investment?

1) Sales
2) Total assets at the beginning of the period
3) Business enterprises
4) Individuals

Answer 1

The return on investment (ROI) measure of performance is calculated using the total assets at the beginning of the period as the amount of investment.

Step-by-step explanation:

The return on investment (ROI) measure of performance is calculated using the total assets at the beginning of the period as the amount of investment.

ROI is a financial metric used to assess the profitability of an investment. It is calculated by dividing the net income by the total assets. Net income represents the profit generated by the investment, while total assets at the beginning of the period represent the initial amount invested.

For example, if a business had a net income of $10,000 and total assets of $100,000 at the beginning of the period, the ROI would be 10% ($10,000 divided by $100,000).