Which of the Following Is Not a Limitation of Using

question 75

Multiple Choice

Which of the following is not a limitation of using the accounting rate of return method for capital budgeting?

• A)The accounting rate of return method does not incorporate time value of money.
• B)The accounting rate of return method is based on accounting income,rather than cash flow.
• C)Net income-on which the accounting rate of return method is based-is more objective than cash flow.
• D)The accounting rate of return method is subject to potential manipulation based on accounting choices made by management (e.g. ,the method used to depreciate a capital asset).

Compute the total repayment amount for loans with multiple disbursements and varying interest rates.

Determine the size of equal payments required to repay a loan or fulfill an obligation under specific conditions.

Apply financial calculations to real-life scenarios, such as savings, loans, and investments, using financial functions on a calculator.

Understand the impact of time value of money on long-term savings and payment plans.

---

Definitions:

Fine

In another context, refers to a monetary charge imposed as a penalty for an offense.

Reflexive

Refers to automatic responses to stimuli, not requiring conscious thought.

Native

Pertaining to something or someone indigenous or originating naturally in a particular place or environment.

Disorganized Attachment

A type of attachment pattern observed in children, characterized by a lack of consistent strategies in dealing with the stress of separation from and reunion with their caregivers, often resulting from trauma or abuse.