Question 1: True / false

6.Residual income is calculated after deducting both depreciation on non-current assets and notional interest on the division's capital employed. (True/False)

7.Performance reports allow comparisons between actual performance and budget expectations. (True/False)

8.Residual income is the amount of profit left after subtracting expenses of a particular investment center. (True/False)

9.Like ROI, residual income is a performance measure displayed as a ratio. (True/False)