Asked by
alexandra fuller
on Nov 08, 2024
Verified
Average accounting return is defined as:
A) Average net income divided by average book value.
B) Average cash inflow divided by average cash outflow.
C) Average sales divided by average total assets.
D) Average net income divided by average project cost.
E) Average cash inflow divided by average book value.
Average Cash Inflow
The mean amount of money received by a company over a defined period, typically calculated for assessment or planning purposes.
Average Net Income
The mean amount of revenue remaining after all expenses, taxes, and costs have been deducted over a certain period.
- Discern the boundaries and implementations of the Average Accounting Return (AAR) in choosing investments.
Verified Answer
CG
Learning Objectives
- Discern the boundaries and implementations of the Average Accounting Return (AAR) in choosing investments.
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