International Journal of Accounting and Taxation

Measure the Effectiveness of the Rate of Return on Investment in the Evaluation of the Performance of the Commercial Companies - Case Study Fawaz Alhokair and Its Partners
Dr. Alfateh Al-Amin A/Rahim El-Faki

Abstract
This study examined the effectiveness of measuring the performance evaluation using the return on investment. There are many problems that are related to the return on investment. We can clarification that by the main question: what the impact of these problems on the return on investment as a tool to evaluate the performance?. The study aims to review the possible solutions of the accounting literature that dealt with the subject, on the other hand try to use accounting data in the process of assessing the performance of companies. The researcher found many of the most important results; you can use the return on investment in the evaluation of the performance of commercial companies that deal in more than a commodity, also the return on investment includes two parts, each part has a different explanation for the other part, which requires accuracy when used as a tool to evaluate the performance.

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