The average accounting rate of return (AAR): Select one: A. is the best method of financially analysing mutually exclusive projects. B. is similar to the return on assets ratio. C. measures net income as a percentage of the sales generated by a project. D. considers the time value of money. E. is the primary methodology used in analyzing independent projects.

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter4: The Balance Sheet And The Statement Of Shareholders' Equity
Section: Chapter Questions
Problem 29GI
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The average accounting rate of return (AAR):

Select one:

A. is the best method of financially analysing mutually exclusive projects.

B. is similar to the return on assets ratio.

C. measures net income as a percentage of the sales generated by a project.

D. considers the time value of money.

E. is the primary methodology used in analyzing independent projects.

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