An Investment Is Acceptable If Its Average Accounting Return (AAR)

question 303

Multiple Choice

An investment is acceptable if its average accounting return (AAR) :

• A) Is less than a target AAR.
• B) Exceeds a target AAR.
• C) Exceeds the firm's return on equity (ROE).
• D) Is less than the firm's return on assets (ROA).
• E) Is equal to zero and only when it is equal to zero.

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Definitions:

Ph.D. Degree

A Doctor of Philosophy degree, which is a postgraduate academic degree awarded by universities to candidates who have submitted a thesis based on original research in their field of study.

Mary Whiton Calkins

An American psychologist who was the first woman to serve as the President of the American Psychological Association and a pioneer in memory research.

Wilhelm Wundt

Often referred to as the "father of experimental psychology," he founded the first formal laboratory for psychological research in 1879.

Introspection

The examination of one's own conscious thoughts and feelings, often as a method in psychological research to understand mental states and processes.