Consider the Following Statements About the Accounting Rate of Return

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.