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Management · Q128

Management Accounting

Graduate and Post Graduate · Management · question 128

Q128

Annual earned income is divided from a project by capital invested to calculate

A.
accrual accounting rate of return
Answer
B.
returned working capital
C.
increase in expected average annual
D.
decrease in expected average annual

Answer: Option A

Solution

Answer: Option A
Solution:
Annual earned income is divided from a project by capital invested to calculate accrual accounting rate of return. The accrual accounting rate of return takes the accounting rate of return calculation and applies the accrual method of accounting.