Return on investment (ROI) is:

A Revenue / cost

B Net income / total investment (or average assets)

C Cash / debt

D Sales / expenses

✓ Correct Answer: Option B

ROI = Net Income / Investment. Measures profitability relative to capital employed. Higher is better.

💡 Why is B) the correct answer?

The correct answer to the question "Return on investment (ROI) is:" is Option B: Net income / total investment (or average assets).

The other options — A) Revenue / cost, C) Cash / debt, D) Sales / expenses — are incorrect for this CPA Exam Prep question. As explained above: ROI = Net Income / Investment. Measures profitability relative to capital employed. Higher is better.

📚 About This CPA Exam Prep Practice Question

This 1-level CPA Exam Prep question from the Business Environment (BEC) topic is part of BrainForge Quiz's free exam preparation library. Each question includes the correct answer and a detailed explanation to help you understand the underlying concept, not just memorize the answer.

How to use this page: Read the question above, consider all four options (A through D), then check the highlighted correct answer and explanation. For active timed practice, start a free CPA Exam Prep practice test or use flashcards for spaced repetition review.

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Return on investment (ROI) is:

✓ Correct Answer: Option B

📚 About This CPA Exam Prep Practice Question

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