The Shortcoming(s)of the Average Accounting Return (AAR)method Is (Are)

question 24

Multiple Choice

The shortcoming(s) of the average accounting return (AAR) method is (are) :

• A)the use of net income instead of cash flows.
• B)the pattern of income flows has no impact on the AAR.
• C)there is no clear-cut decision rule.
• D)All of the above.
• E)None of the above.

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