The Average Accounting Return Is Determined By

question 62

Multiple Choice

The average accounting return is determined by:

• A)dividing the yearly cash flows by the investment.
• B)dividing the average cash flows by the investment.
• C)dividing the average net income by the average investment.
• D)dividing the average net income by the initial investment.
• E)dividing the net income by the cash flow.

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Definitions:

Opportunity Cost

The cost of forgoing the next best alternative when making a decision or choosing between options.

OLED TVs

Televisions that use Organic Light-Emitting Diodes for a better display with higher contrast, deeper blacks, and a wider viewing angle compared to traditional LCDs.

LCD TVs

Liquid Crystal Display Televisions, a technology for displaying images.

Opportunity Cost

The next best alternative forgone as the result of making a decision.