Question

The ROI (Return on Investment) formula focuses on the amount of operating income earned before other .revenue/expense items, such as interest expense, by utilizing the average total assets employed for the year   

true or false

Answer 1

The ROI (Return on Investment) formula focuses on the amount of operating income earned after other revenue/expense items, such as interest expense, by utilizing the average total assets employed for the year.

Return on investment is the percentage of return on funds invested in the business by the business owners, this ratio provides whether or not all the effort put into the business have been worthwhile or not.

while calculating return on investment all other expenses such as interest and other expenses will be considered.

Accordingly, the above statement is false.