Average Accounting Return Is Defined As

question 14

Multiple Choice

Average accounting return is defined as:

• A) Average net income divided by average book value.
• B) Average cash inflow divided by average cash outflow.
• C) Average sales divided by average total assets.
• D) Average net income divided by average project cost.
• E) Average cash inflow divided by average book value.

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Definitions:

Symmetry

The property of being made up of exactly similar parts facing each other or around an axis; often evaluated in statistical data sets.

Normal Distribution

A symmetrical, bell-shaped distribution of data wherein most observations cluster around the central peak and probabilities for values taper off equally in both directions.

Mean

The arithmetic average of a set of values, calculated by summing all the values and then dividing by the number of values.

Normal Curve

A bell-shaped curve that represents the distribution of a set of data where most values cluster around the mean.