The Accounting Rate of Return Is Computed As: A

question 65

Short Answer

The accounting rate of return is computed as: a. Average annual income from the project divided by average annual investment.
B) Average annual income from the project divided by the length of time it takes to recoup the initial investment.
C) Average annual investment divided by the average annual income from the project.
D) Average annual investment divided by the length of time it takes to recoup the initial investment.
E) The initial cash outlay divided by the average annual income from the project.

---

Definitions:

Car Rental

The service of leasing automobiles for short periods of time, often ranging from a few hours to several weeks.

Commute

The regular travel of an individual between their place of residence and workplace or study.

Statute of Limitations

Legislation that establishes a deadline by which legal actions must be commenced following an incident.

Oral Contracts

Agreements that are made verbally and not recorded in a written document, but are still legally binding.