Consider the Following Statements About the Accounting Rate of Return

question 31

Multiple Choice

Consider the following statements about the accounting rate of return:
I. The accounting rate of return focuses on a project's income rather than its cash flows.
II. Companies can figure the accounting rate of return on either the initial investment figure or an average investment figure.
III. The accounting rate of return considers the time value of money.
Which of the above statements is (are) correct?

• A) I only.
• B) II only.
• C) III only.
• D) I and II.
• E) II and III.

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Definitions:

Voluntary Responses

Actions that are consciously controlled by the brain, often in response to stimuli or as part of deliberate movement or decision-making.

Involuntary Responses

Reflex actions that occur without conscious control, such as breathing, blinking, or the heartbeat.

Reaction Times

The duration of time taken to respond to a stimulus, often used to measure the speed of nervous system processing.

Msec

Abbreviation for milliseconds, a unit of time equal to one thousandth of a second.