Multiple Choice
Which of the following is an advantage of the accounting rate of return?
A) It is easy to determine the time value of money used in the calculation.
B) Accounting records are generally not based on cash flow, so the information for the calculation is readily available.
C) Since depreciation is not included in the calculation, the result is not distorted.
D) It uses actual profit amounts from previous accounting periods.
Correct Answer:
Verified
Correct Answer:
Verified
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