Which One of the Following Correctly Applies to the Average

Multiple Choice

Which one of the following correctly applies to the average accounting rate of return?

A) It considers the time value of money.
B) It measures net income as a percentage of the sales generated by a project.
C) It is the best method of analyzing mutually exclusive projects from a financial point of view.
D) It is the primary methodology used in analyzing independent projects.
E) It can be compared to the return on assets ratio.