Managers May Use the Accounting Rate of Return to Evaluate

question 146

Multiple Choice

Managers may use the accounting rate of return to evaluate potential investment projects because

• A) debt contracts require that a firm maintain certain ratios that are affected by income and long-term asset levels.
• B) it serves as a screening measure to insure that new investments do not affect key financial ratios.
• C) bonuses to managers may be based on accounting income and/or return on assets.
• D) it can be tied to the manager's personal income.
• E) All of these.

Grasp the significance of information processing speed in children's development and how it changes with age.

Identify the contributions of Lev Vygotsky's socio-cultural theory of cognitive development.

Recognize the role of attachment and the factors affecting it in early development.

Appreciate the impact of sibling presence on cognitive skills reflecting concepts like the zone of proximal development.

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Definitions:

Billion

A numerical value representing one thousand million (1,000,000,000).

Dollar-Denominated Assets

Financial assets such as bonds, stocks, or bank deposits that are measured in U.S. dollars.

Foreign Investment

Foreign investment involves capital flows from one country to another, granting the investor ownership stakes in foreign companies or assets, aiming for future returns on the investments.

Creditors

Individuals or institutions that lend money or extend credit, expecting to be repaid, usually with interest.