Which One of the Following Correctly Applies to the Average

question 108

Multiple Choice

Which one of the following correctly applies to the average accounting rate of return?

• A)It considers the time value of money.
• B)It measures net income as a percentage of the sales generated by a project.
• C)It is the best method of analyzing mutually exclusive projects from a financial point of view.
• D)It is the primary methodology used in analyzing independent projects.
• E)It can be compared to the return on assets ratio.

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