?
Rupee amount for required return of investment is subtracted from income to calculate
Answer & Solution
Correct Answer:
Option
C
Rupee amount for required return of investment is subtracted from income to calculate residual income. Residual income is excess income generated more than the minimum rate of return. Residual income is a measurement of internal corporate performance, whereby a company's management team evaluates the income generated relative to the company's minimum required return.
Join the Discussion
Login to post a comment or share your explanation.
Login