Assuming That Straight Line Depreciation Is Used, the Average Accounting

question 290

Multiple Choice

Assuming that straight line depreciation is used, the average accounting return for a project is computed as the average:

• A) Net income of a project divided by the average total assets of a firm.
• B) Book value of a project multiplied by the average profit margin of the project.
• C) Book value of a project divided by the average net income of the project.
• D) Net income of a project divided by the average investment in the project.
• E) Net income of the firm divided by the average investment in a project.

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Definitions:

OM Function

Operations management function, which involves the responsibility for planning, organizing, and supervising the processes that produce a company's goods or services.

Money Transfers

The process of moving funds from one account or individual to another, through various methods such as electronic transfers, wire transfers, or checks.

Multifactor Productivity

Indicates the ratio of the goods and services produced (outputs) to many or all resources (inputs).

Capital Acquisition

The process of acquiring funds or assets for the purpose of investment or enterprise growth.