Question

The accounting rate of return method considers the time value of money. True False

The accounting rate of return method considers the time value of money.

True

False

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Ans is False

Reason:-

The accounting rate of return does not take present value of the profits. This is the limitation of the accounting rate of return.

Hi mate,
I would be grateful to you if you can provide a thumbs up and write one beautiful comment. It will improve my rating and let me continue my journey here.
In case of doubt, please comment. I will consider myself fortunate if I can help you.
All the best for your bright future.
Be safe from the corona. Wear a mask before going out and wash hands frequently especially before touching the face
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Since the average accounting return (AAR) method of project analysis _____________, it is considered as the...
Since the average accounting return (AAR) method of project analysis _____________, it is considered as the method's strength. ignores the issue of taxes uses a cutoff rate considers the time value of money is easy to calculate is based on accounting values Pick the correct statement related to average accounting rate of return (AAR) from below. The average accounting rate of return considers the time value of money. The average accounting rate of return measures net income as a percentage...
Margin trading mitigates risk. True or False The risk free rate of return considers the expected...
Margin trading mitigates risk. True or False The risk free rate of return considers the expected rate of inflation. True or False
Consider the following statements about the accounting rate of return: I. The accounting rate of return...
Consider the following statements about the accounting rate of return: I. The accounting rate of return focuses on a project's income rather than its cash flows. II. Companies can figure the accounting rate of return on either the initial investment figure or an average investment figure. III. The accounting rate of return considers the time value of money. Which of the above statements is (are) correct?
Only pure risk is insurable. True False The internal rate of return (IRR) method estimates the...
Only pure risk is insurable. True False The internal rate of return (IRR) method estimates the rate of return that can be expected from a contemplated investment. True False The percentage annual interest rate is the rate a business will pay by not taking a discount. True False
Is the following statement true or false based on the concept of the time value of...
Is the following statement true or false based on the concept of the time value of money: $10,000 that I will receive two years from now is worth less ta me today than when I will receive it in two years. True False QUESTION 2 Suppose that the internal rate of return (IRR) of a project a company is considering is 15%, and the companys cost of capital 10%. Should the company consider Investing in this project? Yes No
UBER’s management considers TESLA a competitor. True or False?
UBER’s management considers TESLA a competitor. True or False?
1.[ True / False ] The return of a risky asset can be treated as a...
1.[ True / False ] The return of a risky asset can be treated as a random variable, and an investment opportunity can be defined by its return distribution. 2.[ True / False ] By estimating the expected return, variance, skewness, and kurtosis of an asset, we can have a rough idea of how its return distribution looks like 3. [ True / False ] The real rate of interest can be understood as the price on money and is...
The two capital investment evaluation methods that consider the time value of money concept are: a.the...
The two capital investment evaluation methods that consider the time value of money concept are: a.the net present value method and the average rate of return method. b.the cash payback method and the net present value method. c.the average rate of return method and the cash payback method. d.the internal rate of return method and the net present value method.
Explain the time value of money concept. What is meant by the effective interest rate. How...
Explain the time value of money concept. What is meant by the effective interest rate. How are time value of money concepts applied to accounting applications in determining the present value of expected cash flows and in valuing bonds?
Explain the time value of money concept. What is meant by the effective interest rate. How...
Explain the time value of money concept. What is meant by the effective interest rate. How are time value of money concepts applied to accounting applications in determining the present value of expected cash flows and in valuing bonds?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT