When Computing the Accounting Rate of Return for a Capital

question 82

Multiple Choice

When computing the accounting rate of return for a capital asset, which of the following is used as the equation's numerator?

• A) Average annual operating income from the asset
• B) Average amount invested in the asset
• C) Total amount invested in the asset
• D) Average net cash flows from the asset

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Definitions:

Sudden Onset

Refers to the rapid development of symptoms or conditions, often without warning.

Extreme Fatigue

A condition of overwhelming and persistent tiredness or lack of energy not relieved by rest.

Common Cold

A viral infectious disease of the upper respiratory tract characterized by symptoms like sneezing, coughing, sore throat, and runny nose, usually self-limiting in nature.

Influenza

An extremely infectious virus affecting the respiratory system, leading to high fever, significant discomfort, and nasal congestion, frequently seen in widespread outbreaks.