AICPA Exam CPA-Business Topic 3 Question 65 Discussion

Actual exam question for AICPA's CPA-Business exam

Question #: 65
Topic #: 3

The following information pertains to Quest Co.'s Gold Division for 1993:

Quest's return on investment was:

A10.00 percent.

B13.33 percent.

C27.50 percent.

D30.00 percent.

Show Suggested Answer

Suggested Answer: C

Choice 'c' is correct. Return on investment equals net income divided by average invested capital:

Choices 'a', 'b', and 'd' are incorrect, per the above calculation.

by Mitsue at Feb 07, 2023, 06:04 AM

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