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:

Frontal Lobes

Regions of the brain located at the front part of the cerebral cortex, involved in decision making, problem solving, and control of behavior and emotions.

Memory Consolidation

The process by which short-term memories are transformed into long-term memories, making them stable over time.

Priming

The activation, often unconsciously, of certain associations, thus predisposing one’s perception, memory, or response.

Tunnel Vision Memory

A cognitive bias where individuals focus on a limited aspect of an experience or event, neglecting other relevant details.