What Is the Average Annual Accounting Rate of Return Based

question 1

Multiple Choice

What is the average annual accounting rate of return based on the average book value of the investment?

• A) 40%
• B) 60%
• C) 100%
• D) 120%

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Definitions:

Customer Discount

A reduction in the price offered to customers, often as an incentive for early payment or as part of promotional efforts.

Sales Tax

A tax imposed by governments on the sale of goods and services, collected by the retailer at the point of purchase.

Sales Discount

From the seller’s perspective, a discount that a seller may offer the buyer for early payment.

FOB Shipping Point

A term used in shipping agreements indicating that the buyer is responsible for the cost and liability of goods during transportation once they are shipped.