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

---

Definitions:

Claustrophobia

Fear of tight, small places.

Agoraphobia

Fear of open, crowded places.

Crowded

A situation or environment that is densely filled with people or objects, often leading to discomfort or limited space.

Obsessive-Compulsive Disorder

A mental disorder characterized by unwanted, repetitive thoughts (obsessions) and/or behaviors (compulsions) that the individual feels the urge to repeat over and over.