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The Shortcoming(s)of the Average Accounting Return (AAR)method Is (Are)

Question 24

Multiple Choice

The shortcoming(s) of the average accounting return (AAR) method is (are) :


A) the use of net income instead of cash flows.
B) the pattern of income flows has no impact on the AAR.
C) there is no clear-cut decision rule.
D) All of the above.
E) None of the above.

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