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1 year ago

Ignoring income taxes, the annual net income amount used to calculate the accounting rate of return is:_____.

1 answer:

6 0

Ignoring income taxes, the annual net income amount used to calculate the Accounting Rate of Return is Average Annual Profit / Average Investment.

The Accounting Rate of Return (ARR) is the average net income which an asset is expected to generate divided by its average capital cost, and thus it is expressed as an annual percentage.

The ARR's formula is used to make capital budgeting decisions. It is used in situations where companies are deciding on whether or not to invest in an asset based on its expected future net earnings.

Hence, the Accounting Rate of Return is calculated by Average Annual Profit / Average Investment.

To learn more about Accounting Rate of Return (ARR) here:

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Are contractually-stipulated cooperation programs between unions and management a realistic and workable concept? Why or why not

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A company pays each of its two office employees each Friday at the rate of $100 per day each for a five-day week that begins on

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<h3>Answer:</h3>

Debiting salaries Expense $400 and Crediting Salaries payable $400.

<h3>Explanation:</h3>

We are given;

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Therefore, the month-end adjusting entry to record will be the amount earned by the two employees on the two days.

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3 years ago

The opening of a new American-owned factory in Algeria would tend to increase Algeria's GDP more than it increases Algeria's GNP

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Answer:

The correct answer is option a and option b.

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The opening of a new American-owned factory in Algeria would tend to increase Algeria's GDP more than it increases Algeria's GNP.

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3 years ago

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Answer:

<u>As at April 30</u>

Dr. Account Receivable (120 days / 180 days x 6000 x 0.08) ..$320

Cr. Interest Income......................................................................................$320

Being accrued interest Income for current year to date on note receivable

Dr. Bank..............................................................................................$6,483

Cr. Accounts Receivable ($6000 note receivable + $163 + $320)...$6,483

Being settlement of note receivable with total accrued interest Income

Explanation:

Following are selected transactions for Vitalo Company.

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<u>As at November 1</u>

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Dr. Account Receivable (61 days /180 days x 6000 x 0.08) ..$163

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Apr. 30 White honored her note when presented for payment; February has 28 days for the current year.

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Dr. Account Receivable (120 days / 180 days x 6000 x 0.08) ..$320

Cr. Interest Income......................................................................................$320

Being accrued interest Income for current year to date on note receivable

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Cr. Accounts Receivable ($6000 note receivable + $163 + $320)...$6,483

Being settlement of note receivable with total accrued interest Income

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3 years ago

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