Which of the Following Statements About the Accounting Rate of Return

question 62

Multiple Choice

Which of the following statements about the accounting rate of return method is/are correct?
i.It is a simple way of screening investment proposals
ii.It is used by some managers because they believe this method parallels financial accounting statements.
iii.It is more accurate than the payback method because it considers the time value of money.

• A) ii and iii
• B) iii
• C) i and ii
• D) All of the given Answers

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