The rate of return (ROI) on investment is computed as

1. net income divided by invested assets.
2. revenue divided by invested assets.
3. income from operations divided by invested assets.
4. None of these choices are correct.

2. When comparing return on investment (ROI) over time, a favorable trend would be

1. an increase in ROI.
2. a decrease in ROI.
3. no change in ROI.
4. fluctuating increases and decreases in ROI.

3. The excess of income from operations over a minimum acceptable income from operations is called

1. net income.
2. residual income.
3. operating income.
4. None of these choices are correct.