If the Accounting Rate of Return Exceeds the Required Accounting

question 152

Multiple Choice

If the accounting rate of return exceeds the required accounting rate of return,

• A)invest in the capital asset.
• B)do not invest in the capital asset.
• C)only invest if the payback period is also greater than the required rate of return.
• D)only invest if the payback period is also less than the required rate of return.

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Definitions:

Abusive Behavior

Actions that intentionally harm or create a risk of harm to another person, whether physically, emotionally, or mentally.

Stocks

Shares of ownership in a company that represent a claim on part of the company's assets and earnings.