The 'Return on Investment' (ROI) formula is: MCQ with Answer and Explanation

Question Report Error

The 'Return on Investment' (ROI) formula is:

A. Net profit / Sales

B. Sales / Capital employed

C. Net profit / Capital employed

D. Gross profit / Sales

Answer: Option C

Solution (By JKExamLibrary)

ROI = Net profit before interest and tax / Capital employed, or sometimes PAT/CE. Typically, Net profit / Capital employed.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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