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Scrat [10]
1 year ago
12

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

Business
1 answer:
Darina [25.2K]1 year ago
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:

brainly.com/question/12988548

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You might be interested in
The financial statement that shows the beginning balance of retained earnings; the changes in retained earnings that resulted fr
azamat

Answer:

e. Statement of retained earnings.

Explanation:

Statement of retained earnings -

It refers to the financial statement , that defines the alterations in the retained earning , for a particular time period , is referred to as the Statement of retained earnings .

The statement mention  the beginning and the ending retained earnings in the given time frame , which helps to calculates the corporate profit .

Hence , from the given information of the question,

The correct option is e. Statement of retained earnings .

8 0
3 years ago
Which of the following will be accomplished by assessing the factors of production?
Tamiku [17]

I believe the answer is: c. guaranteeing the fulfilment of needs and wants


By assessing the factors of production, we could gauge the amount of supply that we can make from the remaining factors of production and how much time we can expect to do it.

If we ensure that we only receive an order according to our production capability, we will guarantee that all costumers needs and wants are fulfilled.

5 0
3 years ago
Another bank is also offering favorable terms, so Rahul decides to take a loan of $18,000 from this bank. He signs the loan cont
yanalaym [24]

Answer:

Explanation:

final loan amount = $18,455.86

so correct option is c. $18,455.86

Explanation:

given data

loan = $18000

rate =  10%

time = 3 months

to find out

total amount that Rahul owes the bank at the end of the loan

solution

we know that number of day in 3 months is

number of day = 3 ×  

number of day = 91.25 days

loan rate =  

loan load = 0.00027397

now final loan amount will be

final loan amount = loan amount ×        

final loan amount = $18000  ×    

final loan amount = $18,455.86

so correct option is c. $18,455.86

7 0
3 years ago
how will this discount change the consumer surplus and producer surplus? will big top be more efficient?
Vinvika [58]

The potential producer surplus rises as the equilibrium price rises. Producer surplus decreases when the equilibrium price falls. The producer surplus is intimately correlated with changes in the demand curve.

<h3>How do producer surplus and consumer surplus relate to one another?</h3>
  • The difference between what a consumer is willing to pay and what they actually spent for a product is referred to as the consumer surplus. The difference between the market price and the lowest price a producer will accept to create a good is known as the producer surplus.
  • The difference between what a consumer is willing to pay and what they actually spent for a product is referred to as the consumer surplus. The gap between the market price and the lowest price a producer is willing to accept is known as the producer surplus.

To learn more about producer surplus refer to:

brainly.com/question/14727592

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3 0
2 years ago
Allocative inefficiency due to unregulated monopoly is characterized by the condition:____.
Lerok [7]

Allocative inefficiency due to unregulated monopoly is characterized by the condition: P>MC.

Allocative inefficiency happens whilst the purchaser does no longer pay a green price. A green charge is one that just covers the costs of manufacturing incurred in supplying the good or provider. Allocative efficiency occurs while the company's fee, P, equals the greater (marginal) cost of delivery, MC

Monopolies can boom fees above the marginal fee of manufacturing and are allocative inefficient. that is because monopolies have marketplace strength and may boom rate to reduce client surplus.

Allocative efficiency occurs while consumer demand is completely met by means of supply. In other words, organizations are presenting the precise supply that clients want. For an instance, a baker has 10 customers trying an iced doughnut. The baker had made exactly 10 that morning – that means there's an allocative performance.

Learn more about Allocative efficiency  here:

brainly.com/question/14471969

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7 0
1 year ago
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