1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
tekilochka [14]
3 years ago
15

Which of the following formulas is used to compute the accounting rate of return?

Business
1 answer:
tekilochka [14]3 years ago
5 0

Answer:

Option (A) is correct.

Explanation:

Accounting rate of return is determined to take the efficient business decision related to the capital budgeting and it tell us whether to accept the proposal or not. The following is the formula:

Accounting rate of return = (Average Income ÷ Initial Investment)

For example:

Net profit for 3 years are as follows:

2012 - 13 = $50 million

2013-14 = $100 million

2014-15 = $150 million

Initial investment = $200

Average profit = ($50 + $100 + $150) ÷ 3

                        = $100

Accounting rate of return = (Average Income ÷ Initial Investment)

                                          = $100 ÷ $200

                                          = 0.5 or 50%

You might be interested in
Stock dividends and stock splits should, at least conceptually, have the same effect on shareholders' wealth. True or false?
bulgar [2K]

Answer:

The correct answer is True.

Explanation:

The dividend in shares is a distribution of benefits, through which a corporation distributes to its shareholders shares released from the issuance itself or shares of open stock companies that the company owns.

A division of shares is a corporate action that increases the number of shares in circulation of the company by dividing them, which in turn decreases its price. The market capitalization of the share, however, remains the same, just as the value of the $ 100 bill does not change if it is exchanged for two of $ 50. For example, with a division of shares of 2 by 1, each shareholder receives an additional share for each share held, but the value of each share is reduced by half: two shares now equal the original value of a share before the division .

7 0
4 years ago
Andy, Ben, Liza, Ted, and Jim are online customer service representatives. They have all been reprimanded by their boss. Andy is
USPshnik [31]

Answer:

B. Ben

Explanation:

Ben is the one that is less likely to show emotions or be upset when reprimanded. This is because Ben is the oldest amongst those listed and also a Male. Older males less likely experience high level of negative emotions when compared with younger individuals or their female counterparts. Younger people are said to experience high negative emotions when compared with older people. Females also have higher level of emotions, so they will definitely be upset after facing reprimand.

8 0
4 years ago
Read 2 more answers
During times of rising prices, which of the following is not an accurate statement?a. Average costing will yield results that ar
Levart [38]

Answer:d. LIFO will result in higher income taxes than FIFO

Explanation:

A period of rising prices means price will be higher on the latter goods than the former, inventory sold on Last in first out method (LIFO) will be costlier in this period than inventory sold on First in First out ( FIFO) this invariably means LIFO will result in lower net income due to high cost of inventory compared to FIFO and the lower the net income the lower the income tax this invariably means LIFO will result in lower income tax.

Average costing will yield result that are between those of LIFO and FIFO since it can an average of two price with one LIFO and the other on FIFO, LIFO will result in higher cost of goods sold since the latter goods will be costlier, FIFO will result in higher net income since the goods will be cheaper than LIFO.

5 0
3 years ago
True of False: You can reduce impulse buying by doing research before each purchase.
shtirl [24]

Answer:

true

Explanation:

7 0
3 years ago
The acid-test ratio takes the sum of cash, short-term investments, and ________ and divides the total by current liabilities. It
Anna [14]

The acid-test ratio takes the sum of cash, short-term investments, and receivables and divides the total by current liabilities. .

Acid test ratio is also known as quick ratio. It is a measure of the capability of a firm to use its short term assets to meet current liabilities. It is an example of an activity ratio.

Acid test ratio = (current asset - inventory) / current liabilities

The higher the  acid-test ratio, the better the ability of a firm to meets its short term liabilities.

A similar question was answered here: brainly.com/question/1114476

8 0
2 years ago
Other questions:
  • In December 2012, Eric hires a band to play at a huge graduation party he is planning to hold in May, 2014. The deal is never pu
    9·1 answer
  • If current market interest rates rise, what will happen to the value of outstanding bonds?
    7·1 answer
  • Westfall Industries began 2018 with accounts​ receivable, inventory, and prepaid expenses totaling $ 50 comma 000 and its total
    8·1 answer
  • The price elasticity of demand for beef is about 0.60. Other things equal, this means that a 20 percent increase in the price of
    11·1 answer
  • The liabilities of Blue Spruce Company are $87,000. Common stock account is $145,000; dividends are $44,000; revenues, $462,000;
    14·1 answer
  • Both the satisfaction of creating new products and the possibility of earning money are _____ for an entrepreneur. risks incenti
    5·2 answers
  • Hubert: Demand decreased, but it was perfectly inelastic. Kate: Demand decreased, but supply was perfectly inelastic. Manuel: De
    13·1 answer
  • A certain company just announced it will cut next year's dividends from $4 to $2.50 per share and use the extra funds to expand.
    7·1 answer
  • What is the most money you get in a job?
    9·2 answers
  • Videoconferencing, instant messaging, electric meetings, and even conference calls are considered __________ technology.
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!