What Is the Denominator in the Average Accounting Rate of Return

question 36

Multiple Choice

What is the denominator in the average accounting rate of return technique?

• A)Average invested capital
• B)Required rate of return
• C)Average income
• D)EBDIT

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Definitions:

Amortization

The process of gradually writing off the initial cost of an asset over its useful life or pay down the principal of a loan over time.