Entity Resources That Are Always Considered in Efficiency Assessments for an AIS

question 75

Multiple Choice

Entity resources that are always considered in efficiency assessments for an AIS are:

• A) cash and equipment
• B) inventory and cash
• C) people and computers
• D) fixed assets and inventory

---

Definitions:

Average Annual Income

The average amount of money earned per year over a specified period, often used to assess financial stability.

Accounting Rate of Return

A financial metric used to assess the profitability of an investment, calculated by dividing the average annual accounting profit by the initial investment cost.

Cash Payback Method

An investment appraisal technique that calculates the time needed to recoup the cost of an investment through cash flows.

Present Values

The present value is the current worth of a future sum of money or stream of cash flows given a specified rate of return.