{"id":8725,"date":"2024-04-15T03:05:13","date_gmt":"2024-04-15T03:05:13","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=8725"},"modified":"2024-04-15T03:05:13","modified_gmt":"2024-04-15T03:05:13","slug":"return-on-investment-ratio-roi-a-gross-profit-net-sales-x-100-b-gross-profit-x-sales-fixed-assets-x-100-c-net-profit-sales-x-100-d-net-profit-total-assets-x-100","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/return-on-investment-ratio-roi-a-gross-profit-net-sales-x-100-b-gross-profit-x-sales-fixed-assets-x-100-c-net-profit-sales-x-100-d-net-profit-total-assets-x-100\/","title":{"rendered":"Return on Investment Ratio (ROI) = A. (Gross profit \/ Net sales) x 100 B. (Gross profit x Sales \/ Fixed assets) x 100 C. (Net profit \/ Sales) x 100 D. (Net profit \/ Total assets) x 100"},"content":{"rendered":"<p>\r\n    <!-- Check if it's an AMP page -->\r\n            <!-- Non-AMP version -->\r\n        <div class=\"mcq-container\" data-quiz-id=\"quizState_6a99670122959\">\r\n                                            <div class=\"option\" data-option-key=\"option1\" data-is-correct=\"false\">\r\n                    (Gross profit \/ Net sales) x 100                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option2\" data-is-correct=\"false\">\r\n                    (Gross profit x Sales \/ Fixed assets) x 100                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option3\" data-is-correct=\"false\">\r\n                    (Net profit \/ Sales) x 100                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option4\" data-is-correct=\"true\">\r\n                    (Net profit \/ Total assets) x 100                <\/div>\r\n                            \r\n            <!-- Feedback messages for non-AMP -->\r\n            <div class=\"feedback\" data-feedback=\"wrong\">Answer is Right!<\/div>\r\n            <div class=\"feedback\" data-feedback=\"right\">Answer is Wrong!<\/div>\r\n        <\/div>\r\n\r\n        <script>\r\n        document.addEventListener('DOMContentLoaded', function () {\r\n            var containers = document.querySelectorAll('.mcq-container');\r\n\r\n            containers.forEach(function(container) {\r\n                var options = container.querySelectorAll('.option');\r\n                var feedbackSelect = container.querySelector('[data-feedback=\"select\"]');\r\n                var feedbackWrong = container.querySelector('[data-feedback=\"wrong\"]');\r\n                var feedbackRight = container.querySelector('[data-feedback=\"right\"]');\r\n\r\n                options.forEach(function(option) {\r\n                    option.addEventListener('click', function() {\r\n                        var selectedOption = option.getAttribute('data-option-key');\r\n                        var isCorrect = option.getAttribute('data-is-correct') === 'true';\r\n\r\n                        \/\/ Remove previous selections\r\n                        options.forEach(function(opt) {\r\n                            opt.classList.remove('correct', 'incorrect');\r\n                        });\r\n\r\n                        \/\/ Add the correct\/incorrect class\r\n                        if (isCorrect) {\r\n                            option.classList.add('correct');\r\n                            feedbackRight.hidden = false;\r\n                            feedbackWrong.hidden = true;\r\n                        } else {\r\n                            option.classList.add('incorrect');\r\n                            feedbackRight.hidden = true;\r\n                            feedbackWrong.hidden = false;\r\n                        }\r\n\r\n                        \/\/ Hide select feedback\r\n                        feedbackSelect.hidden = true;\r\n                    });\r\n                });\r\n            });\r\n        });\r\n        <\/script>\r\n    \r\n    <!--more--><\/p>\n<p>The correct answer is D. (Net profit \/ Total assets) x 100.<\/p>\n<p>Return on investment (ROI) is a performance measure used to evaluate the efficiency or profitability of an investment or compare the efficiency of a number of different investments. ROI tries to directly measure the amount of return on a particular investment, relative to the investment&#8217;s cost. To calculate ROI, the benefit (or return) of <div class=\"telegram-channel-container\">\r\n        <a href=\"https:\/\/t.me\/pscnotes2025\" target=\"_blank\" class=\"telegram-channel-button\">\r\n            <span class=\"telegram-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 496 512\">\r\n                    <path fill=\"white\" d=\"M248,8C111,8,0,119,0,256s111,248,248,248s248-111,248-248S385,8,248,8z M362,177L320,367c-3,14-10,18-20,14l-56-41l-27,26 c-3,3-5,5-10,5l4-63L323,196c5-5-1-7-8-3l-98,62l-42-13c-9-3-10-9,2-14l162-63C351,160,365,164,362,177z\"\/>\r\n                <\/svg>\r\n            <\/span>\r\n            Join Our Telegram Channel\r\n        <\/a>\r\n    <\/div> an investment is divided by the cost of the investment. The result is expressed as a percentage or a ratio.<\/p>\n<p>There are many different ways to calculate ROI, but the <div class=\"youtube-subscribe-container\">\r\n        <a href=\"https:\/\/www.youtube.com\/channel\/UCNHT8lW-JmLC68rjBfZhdkg?sub_confirmation=1\" target=\"_blank\" class=\"youtube-subscribe-button\">\r\n            <span class=\"youtube-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 576 512\">\r\n                    <path d=\"M549.7 124.1c-6.3-23.7-24.8-42.3-48.3-48.6C458.8 64 288 64 288 64S117.2 64 74.6 75.5c-23.5 6.3-42 24.9-48.3 48.6-11.4 42.9-11.4 132.3-11.4 132.3s0 89.4 11.4 132.3c6.3 23.7 24.8 41.5 48.3 47.8C117.2 448 288 448 288 448s170.8 0 213.4-11.5c23.5-6.3 42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z\"\/>\r\n                <\/svg>\r\n            <\/span>\r\n            Subscribe on YouTube\r\n        <\/a>\r\n    <\/div> most common is to use the following formula:<\/p>\n<p>ROI = (Net profit \/ Total assets) x 100<\/p>\n<p>Net profit is the amount of money left over after all expenses have been paid. Total assets are the total value of all the company&#8217;s assets, including cash, inventory, equipment, and property.<\/p>\n<p>ROI is a useful tool for comparing the profitability of different investments. It can also be used to track the performance of an investment over time. However, it is important to note that ROI does not take into account the time value of money. This means that an investment with a high ROI may not be as profitable as an investment with a lower ROI if the higher-ROI investment requires a longer time to pay off.<\/p>\n<p>The other options are not correct because they do not use the correct formula for calculating ROI. Option A uses the formula for gross profit margin, which is a measure of how much profit a company makes on each dollar of sales. Option B uses the formula for return on sales, which is a measure of how much profit a company makes on each dollar of sales. Option C uses the formula for return on assets, which is a measure of how much profit a company makes on each dollar of assets.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Join Our Telegram Channel Subscribe on YouTube<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[85],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Return on Investment Ratio (ROI) = A. (Gross profit \/ Net sales) x 100 B. (Gross profit x Sales \/ Fixed assets) x 100 C. (Net profit \/ Sales) x 100 D. 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