Which of the Following Is the Formula for Calculating the Accounting

question 12

Multiple Choice

Which of the following is the formula for calculating the accounting rate of return for a capital asset?

• A) Average annual net cash inflow from asset/amount invested in asset
• B) Average annual operating income 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:

Glomerular (Bowman's) Capsule

A cup-like sac at the beginning of the tubular component of a nephron in the kidney that performs the first step in the filtration of blood.

Nephron

Microscopic kidney unit that regulates blood composition by glomerular filtration, tubular reabsorption, and tubular secretion.

Glomerulus

A network of capillaries located within the kidney that filters blood, initiating the process of urine formation.

Alveoli

Small air sacs in the lungs where the exchange of oxygen and carbon dioxide takes place, crucial for breathing and gas exchange.