Question
1. A shortcoming of return on investment (ROI) is that it may not lead managers to accept good investment opportunities if a. ROI of the
1. A shortcoming of return on investment (ROI) is that it may not lead managers to accept good investment opportunities if
| a. | ROI of the investment is higher than the present ROI of the division. |
| b. | the ROI of the investment is the same as the present ROI of the division. |
| c. | the ROI of the investment is lower than the present ROI of the division. |
| d. | None of the answers is correct. |
2. Which of the following statements is true concerning economic value added (EVA)?
| a. | EVA alleviates the shortcoming of the return on investment measurement. |
| b. | EVA calculates a percentage for comparison purposes. |
| c. | EVA is required by the New York Stock Exchange. |
| d. | EVA is the same as economic payback analysis.
|
3. Which of the following defines Economic value added (EVA)?
| a. | annual after-tax operating profit minus the total annual cost of capital. |
| b. | annual before-tax operating profit minus the total annual cost of capital. |
| c. | annual after-tax operating profit plus the total annual cost of capital. |
| d. | annual before-tax operating profit plus the total annual cost of capital.
|
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Accounting What The World's Best Forensic Accountants And Auditors Know About Forensic Accounting And Auditing That You Dont
Authors: Greg Shields
1st Edition
1647483255, 978-1647483258
