Which of the Following Is Considered to Be a Redeeming

question 111

Multiple Choice

Which of the following is considered to be a redeeming feature of average accounting return analysis?

• A) It incorporates time value of money.
• B) Estimation of the appropriate cutoff rate is straightforward and easy.
• C) Calculation relies on net income and not cash flows or asset values.
• D) Calculation relies on book values and not market values or cash flows.
• E) It is relatively easy to calculate.

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Definitions:

Infant

A very young child, typically under one year old, who is in the earliest stage of human development.

Visual Preferences

Refers to an individual's tendency to favor certain visual stimuli over others, which can influence perception and choice.

Infant

A very young child or baby, typically from birth until 12 months of age.

Habituation

A decrease in response to a stimulus after repeated presentations, illustrating one of the simplest forms of learning.