Managers May Use the Accounting Rate of Return to Evaluate

question 163

Multiple Choice

Managers may use the accounting rate of return to evaluate potential investment projects because

• A)debt contracts require that a firm maintain certain ratios that are affected by income and long-term asset levels.
• B)it serves as a screening measure to insure that new investments do not affect key financial ratios.
• C)bonuses to managers may be based on accounting income and/or return on assets.
• D)it can be tied to the manager's personal income.
• E)all of these.

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The process of applying final surface treatments to materials or components to achieve desired aesthetic or functional characteristics.

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A type of symbol used on engineering drawings to indicate the type of machining operation required, surface texture, or surface roughness on a part.

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In drafting and design, a line that connects a note or symbol to a specific location, typically used for annotations.

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