Economics · Performance Measurement
In relation to residual income, which of the following statements is correct?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1Residual income does not take the risk of specific projects into account
- 2Residual income assesses divisional income based on the carrying value of the investment which has been made✓
- 3Residual income eliminates the effect of accounting policies from the assessment of performance
- 4Residual income is calculated by adding back depreciation and deducting the notional interest charge
Correct answer
Residual income assesses divisional income based on the carrying value of the investment which has been made
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Start Free Mock Test →Preparing for Economics?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice Performance Measurement MCQs →Want more practice questions on Performance Measurement?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Economics · Performance Measurement