The Accounting Rate of Return Is a Measure of Profitability

question 184

True/False

The accounting rate of return is a measure of profitability computed by dividing the average annual operating income from an asset by the initial amount invested in the asset.

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Definitions:

U.S. GDP

The total monetary or market value of all the finished goods and services produced within the United States' borders in a specific time period.

Newly Manufactured

Items or products that have been recently produced, as opposed to being second-hand or reused.

Personal Income

The total income received by individuals from all sources including wages, salaries, dividends, and any other income before taxes.

Disposable Personal Income

The sum of money remaining for savings and expenditures in households once income taxes are deducted.