When Using the Accounting Rate of Return,what Is the Basis

question 101

Essay

When using the accounting rate of return,what is the basis for making the decision to make the investment?

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Definitions:

List of Accounts

A comprehensive list that includes all of a company's accounts and account numbers used within its accounting system.

Account Balances

The amount of money in a financial repository, such as a checking account, at any given moment.

Reference Column

A column in ledgers or journals used to cross-reference or track specific transactions.

General Journal

A comprehensive accounting ledger that records all financial transactions of a company in chronological order before they are transferred to specific accounts.