Which of the Following Is a Reason Managers Use the Accounting

question 27

Multiple Choice

Which of the following is a reason managers use the accounting rate of return to evaluate potential investment projects?

• A)because debt contracts require that a firm maintain certain ratios that are not affected by income and long-term asset levels
• B)because it serves as a screening measure to ensure that new investments do affect key financial ratios
• C)because bonuses to managers may be based on accounting income and/or return on assets
• D)because it does not consider the time value of money

---

Definitions:

Orphaned

In the context of customer accounts, refers to accounts that have lost their primary contact or representative, often requiring reassignment.

Pharmaceutical Sales

The specific area of sales focused on promoting and selling pharmaceutical products to healthcare professionals and organizations.

Management Position

A role within an organization characterized by overseeing operations and employees, making strategic decisions, and holding responsibility for outcomes.

Social Media Platforms

Online networks and websites that allow users to create, share, or exchange information, ideas, and content among communities.