Asked by Mayesha Tanjeen on Jul 29, 2024
Verified
Residual income is income plus an imputed interest charge for the investment.
Residual Income
The income that remains after deducting all required costs of capital from the operating income.
Imputed Interest
The interest that is considered or assumed to be charged on an interest-free loan or bond, often for tax calculations.
- Comprehend the principles and methods of calculating residual income.
Verified Answer
TS
Tushar Saini DahariaAug 01, 2024
Final Answer :
False
Explanation :
Residual income is actually net operating income minus an imputed interest charge for the investment.
Learning Objectives
- Comprehend the principles and methods of calculating residual income.
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