Which of the Following Statements Is True of Accrual Accounting

question 139

Multiple Choice

Which of the following statements is true of accrual accounting rate of return (AARR) method and internal rate of return (IRR) method?

• A) AARR method calculates the return in absolute terms, whereas IRR method calculates the result in terms of percentage.
• B) The AARR method calculates the return using operating-income numbers after considering accruals and taxes, whereas the IRR method calculates the return using after-tax cash flows and the time value of money.
• C) The AARR method calculates the return considering the time value of money, whereas the IRR method calculates the return ignoring the time value of money.
• D) The AARR method considers cash flows, whereas the IRR method considers operating income.

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Definitions:

Self-concept

An individual's perception of their own strengths, weaknesses, and unique qualities, influencing their feelings and actions.

Self-recognition

The ability of an individual to recognize themselves as an independent entity, often tested through mirror recognition tasks.

Self-awareness

An understanding of one's personal traits, sentiments, driving factors, and aspirations.

Self-recognition

The cognitive ability to recognize oneself in a mirror or photograph, often considered a milestone in self-awareness and identity development.