The Accounting Rate of Return Is Calculated As

question 32

Multiple Choice

The accounting rate of return is calculated as:

• A)The annual after-tax income divided by the total investment.
• B)The annual after-tax income divided by the annual average investment.
• C)The annual cash flows divided by the annual average investment.
• D)The annual cash flows divided by the total investment.
• E)The annual average investment divided by the after-tax income.

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Definitions:

Consistency

Consistency is the quality of always behaving or performing in a similar way, or the quality of producing the same results.

Concise Language

The use of few words to convey an idea without sacrificing clarity or comprehensibility.

Nineteenth Century

The period of time from 1801 to 1900, characterized by significant industrial, cultural, and political changes worldwide.

Consistency

The quality of maintaining the same principles, actions, or conditions over time, ensuring reliability and predictability.