The Accounting Rate of Return Differs from the Internal Rate

question 116

True/False

The accounting rate of return differs from the internal rate of return and the payback period in that, the accounting rate of return does not focus on cash flows.

---

Definitions:

Apparent Authority

A form of authority that a third party reasonably believes an agent has due to the actions of the principal, even if the agent does not have actual authority.

General Sales Agent

An individual or company authorized to sell or distribute a manufacturer's products in a specific area or market.

Express or Implied Authority

Power granted by a principal to an agent, which can be explicitly stated (express) or inferred from actions, circumstances, or job title (implied).

Disclosed Principal

In the realm of agency law, a principal whose identity the third party is aware of when the agent enters into a contract with that third party.