The Accounting Rate of Return Is a Measure of Liquidity

question 60

True/False

The accounting rate of return is a measure of liquidity computed by dividing the average annual cash flows from an asset by the average amount invested in the asset.

---

Definitions:

Human Capital

Human capital is the collective skills, knowledge, or other intangible assets of individuals that can be used to create economic value for the individuals, their employers, or their community.

Existing Technology

The current state of technological development and the tools and processes available for production.

Developing Countries

Countries characterized by their lower industrialization levels, decreased living standards, and a lesser Human Development Index in comparison to developed nations.

Technologically Backward

Description for entities or economies that have not adopted modern technologies or practices, resulting in lower efficiency and productivity.