An Asset of $180,000 Is Expected to Generate $90,000 in Operating

question 68

Multiple Choice

An asset of $180,000 is expected to generate $90,000 in operating income annually for three years.Assume straight-line depreciation is used.The asset has no expected residual value.Ignore income taxes.The accounting rate of return based on the initial investment is ________.

• A)8.33%
• B)16.67%
• C)33.33%
• D)41.67%

---

Definitions:

Predictions

Statements or forecasts about future events, outcomes, or conditions based on current knowledge or analysis.

Degree

An academic rank conferred by a college or university after the completion of a course of study, or recognized as a measure of academic achievement.

Whole Piece

Refers to an object or material that is in its complete form, not divided or broken into parts.

Challenging Assignments

Tasks or projects that are difficult and demanding, but provide an opportunity for learning and development.