Accountancy, asked by brishtymondal8536, 1 year ago

ROI is calculated on ownership capital only. (State True or False)

Answers

Answered by ansamma

I think it is false............

Answered by dualadmire

Answer:

No, the above-given statement is false.

Explanation:

ROI stands for return on investment. It is calculated on total capital employed. The total capital employed includes the ownership capital and debt capital.

It is defined as a ratio between net profit and the cost of investment. It measures the loss or gain on investment relative to the amount of money invested. It is generally expressed in percentage form.

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