Ask Question
Today, 12:27

Residual income can be defined as:

Multiple Choice:

O Income remaining after dividends are paid out.

O Operating earnings minus return on investment.

O Operating earnings plus a minimum acceptable return times average invested capital.

O Operating earnings minus a minimum acceptable return times average invested capital.

+5
Answers (1)
  1. Today, 13:42
    0
    Residual income

    = Operating earnings - (minimum acceptable return x average invested capital)

    The correct answer is D

    Explanation:

    Residual income is one of the measures of divisional performance. It si the excess of operating earnings over the product of minimum acceptable return and average invested capital.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Residual income can be defined as: Multiple Choice: O Income remaining after dividends are paid out. O Operating earnings minus return on ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers