Average Annual After-Tax Profits Per Year Divided by the Average

question 89

Multiple Choice

Average annual after-tax profits per year divided by the average book value of the investment equals

• A) average investment capability.
• B) average investment outlay.
• C) accounting return on investment.
• D) payback period.

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Definitions:

Presentment

The act of making a demand for the drawee to pay.

Dishonored

refers to a financial instrument, like a check, being refused by the bank upon presentation for payment due to insufficient funds or other reasons.

Endorses

The act of signing the back of a check or any other document, which signifies agreement, approval, or endorsement of its contents.

Instrument

A writing that serves as evidence of the right to payment of money.