The Formula for Calculating the Accounting Rate of Return for a Capital

question 126

Multiple Choice

The formula for calculating the accounting rate of return for a capital asset is

• A)average annual operating income from asset/amount invested in asset.
• B)average annual net cash inflow from asset/amount invested in asset.
• C)(average annual operating income + depreciation expense)/amount invested in asset.
• D)(average annual cash inflows - depreciation expense)/(amount invested in asset + residual value of asset).

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Definitions:

Probability

The estimation of how probable an event is, marked by a number from 0 to 1.

Statistics Class

A statistics class is an academic course focused on the study of statistical methods and applications, covering topics such as data collection, analysis, interpretation, and the presentation of results.

Likely Viewer

An individual or demographic presumed to have a high probability of watching or being interested in a particular television program or type of content.

Unlikely Viewer

A person who is not expected to watch or engage with a particular program or content based on their known preferences or demographics.