Which of the following is an advantage of the average accounting return (AAR)? Multiple choice question. It is based on cash flows and market value. It accounts for the time value of money. Its input data are easily available. It uses an arbitrary benchmark cutoff rate.

Which of the following is an advantage of the average accounting return (AAR)? Multiple choice question. It is based on cash flows and market value. It accounts for the time value of money. Its input data are easily available. It uses an arbitrary benchmark cutoff rate.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 11Q: What is the equation to calculate the accounting rate of return?

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Question

Which of the following is an advantage of the average accounting return (AAR)?

Multiple choice question.

It is based on cash flows and market value.

It accounts for the time value of money.

Its input data are easily available.

It uses an arbitrary benchmark cutoff rate.

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