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Tuesday, March 2, 2010

Return On Investment (ROI)/Investment/Asset

A Performance measure used to evaluate the efficiency of an investment or to compare the efficiency of a number of different investments ,To calculate ROI, The benefit of an investment is divided by the cost of the investment, the result is expressed as a percentage or a ratio.

Investment Formula is ROI=Benefit of an investment/Cost of Investment

What is Investment???????????????????????????

An asset or item purchase to use in business for earning purpose or generate income in future ,they have monetary value.

Asset ???????????????????????????????????

           A resource with economic value that an individual, corporation, or country owns or controls with the expectation that it will provide future benefit


Asset are either Current or Fixed

           Current means Assets will be consumed with in one year like Cash ,AR ,Inventory

           Fixed means which Assets will be using in business more then one year for the aim of Profit like ,Building, Equipment etc...

What does Assets Valuation Means???????????????

         The current worth of a Portfolio, Company, Investment, Balance sheet.

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