The Accounting Rate of Return (ARR)

question 165

Multiple Choice

The accounting rate of return (ARR) :

• A) Is synonymous with the internal rate of return (IRR).
• B) Focuses on accrual-basis income numbers rather than after-tax cash flows.
• C) Generally provides a good estimate of a project's IRR.
• D) Explicitly recognizes the time value of money.
• E) Can be used to choose between mutually exclusive projects.

Understand the application of sales tax (including GST and PST) and its calculation on purchases.

Calculate weighted average shares outstanding for a corporation with multiple share issuances.

Determine property tax calculations based on mill rates and assessed values.

Apply problem-solving skills to real-world financial situations involving taxes, salaries, and investment returns.

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Definitions:

Means-ends Chain

A concept in decision-making that links goals (ends) with the strategies or measures (means) adopted to achieve them.

Objectives

Specific, measurable outcomes that an individual or organization aims to achieve.

Well-written Objectives

Clearly defined and articulated goals or purposes, often used in academic and professional settings to outline desired outcomes.

Qualitatively

In a manner that pertains to the quality or characteristics of something, often through descriptive or subjective measures, rather than quantitative or numerical terms.