The Accounting Rate of Return Focuses on The

question 51

Multiple Choice

The accounting rate of return focuses on the:

• A)total accounting income over a project's life.
• B)incremental accounting income over a project's life.
• C)average cash flows over a project's life.
• D)cash inflows from a project.
• E)tax savings from a project.

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Definitions:

Operation of Law

Changes in rights or obligations occurring automatically due to existing legal rules, without the need for action by the parties involved.

Attestation Clause

A provision in a legal document certifying that the document is made willingly and that the signatories are aware of the contents.

Valid Will

A valid will is a legal document that has been properly executed in accordance with the laws governing estate distribution, specifying how a person’s property will be divided after death.

Codicil

A supplement or amendment to a will, allowing for changes or additions without requiring the will to be completely rewritten.