ACCA F5 Specimen Exam Section B Question 1

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1. acaqub says

   August 27, 2015 at 11:32 pm

   Dear John,

   For the calculation of ROI and RI, should I always use PBIT as profit figure? If PBIT is not available, then use Profit before interest. If profit interest is still not available, I then should use net profit?

   Is this logic correct of using profit figure for RI and ROI calculations?

   Thanks!

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   • John Moffat says

     August 28, 2015 at 9:22 am

     These are measures for divisions, and divisions will not be paying interest or tax.

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     • acaqub says

       August 28, 2015 at 9:26 am

       Thanks a lot John!