Accrual Accounting Rate of Return Is Calculated by Dividing ________

question 108

Multiple Choice

Accrual accounting rate of return is calculated by dividing ________.

• A) net initial investment by an increase in expected average annual after-tax operating income
• B) an increase in expected average annual after-tax operating income by the net initial investment
• C) an increase in expected average annual cash flow by the net initial investment
• D) net initial investment by an increase in expected average annual cash flow

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Definitions:

Conditional Probability

The likelihood of one event happening after another event has already taken place.

Independent Events

Events whose occurrence or outcome is not influenced by one another; the outcome of one event does not affect the outcome of another.

Mutually Exclusive Events

Two or more events that cannot occur at the same time within a given experimental setup.

Mutually Exclusive Events

Two events that cannot occur at the same time.