Which Three of the Following Accurately Relate to the Accounting

question 25

Multiple Choice

Which three of the following accurately relate to the accounting rate of return?

• A) It is the ratio of accounting profit to investment, expressed as a percentage.
• B) It makes no allowance for the time value of money.
• C) It is calculated and is required by managers because they are often judged retrospectively by this measure.
• D) It is calculated more often than payback, NPV, or IRR during project appraisal by UK firms.

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Definitions:

Five-Factor Theory

A model in psychology that describes human personality as composed of five broad traits: openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Trait Theories

Theories in psychology that focus on the identification and measurement of specific, consistent personality characteristics.

Unconscious Processes

Mental activities beyond conscious awareness that influence thoughts, feelings, and behaviors.

Projective Measures

Personality tests that examine unconscious processes by having people interpret ambiguous stimuli.