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25 September, 11:42

What will happen to return on investment (ROI) if current assets decrease while everything else remains the same (assume the current assets decreased is part of operating current assets) ?

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  1. 25 September, 11:52
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    Answer: There would be an increase on return on investment (ROI) if current assets decrease while everything else remains the same

    Explanation: This is because when the profit (returns) is constant, but the assets drops in value, the new ROI will be relative drop in value of asset.
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