Accrual Accounting Rate of Return Is Calculated by Dividing ________

Multiple Choice

Accrual accounting rate of return is calculated by dividing ________.

A) net initial investment by an increase in expected average annual after-tax operating income
B) an increase in expected average annual after-tax operating income by the net initial investment
C) an increase in expected average annual cash flow by the net initial investment
D) net initial investment by an increase in expected average annual cash flow