Basic Accounting – Return on Investment


RETURN ON INVESTMENT Cast thy bread upon the waters: for thou shalt find it after many days. –Ecclesiastes 11:1 (KJV)– Obviously, for it to be worthwhile, the returning bread should be more abundant than the bread originally cast upon the waters. Investment can be described as the commitment of resources (funds) to a venture in the expectation future benefits (returns). Investment is thus every asset that an investor owns or controls (directly or indirectly) that has such characteristics. Investment also entails the assumption of risk. While in the spiritual sense,…

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