Which of the Following Is an Advantage of the Accounting

question 8

Multiple Choice

Which of the following is an advantage of the accounting rate of return?

• A)It is easy to determine the time value of money used in the calculation
• B)Accounting records are generally not based on cash flow,so the information for the calculation is readily available.
• C)Since depreciation is not included in the calculation,the result is not distorted.
• D)None of these answer choices are correct.

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Definitions:

Creditor

An entity or person to whom money is owed by a debtor or borrower.

Efficient Manager

An individual who is effective at organizing resources and processes to achieve specific goals with minimum waste.

Partnership Funds

Resources or capital contributed by partners to a partnership for the purpose of its business.

Pro Rata Basis

A method of allocating amounts or resources proportionally, according to a specific rate, percentage, or share.