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What is the accounting rate of return?

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Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
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ISBN: 9781305970663
Author: Don R. Hansen, Maryanne M. Mowen
Publisher: Cengage Learning
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Related Accounting Q&A

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Q: What is the internal rate of return?

A: Internal rate of return is the discount rate at which present value of cash inflows equals outflows…

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Q: What is the difference between the possible returns and the expected return?

A: Click to see the answer

Q: Explain profit-and-loss statement?

A: For financial reporting, there are three major financial statements which a business entity is…

Q: Which different terms are used to refer to rate of return?

A: Rate of return is the return that is expected by the investors from the investment made. It is…

Q: what is the projected balance sheet?

A: Balance Sheet: It is the financial that presents the company's assets, liabilities and shareholders'…

Q: How do you turn an income statement int a forecasted return? And how is it helpful?

A: Return means earn additional on invested amount. Return is a positive factor in every investment.…

Q: What is purchase returns?

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Q: Why is profit shown on liabilities side?

A: This is because of separate entity principle of accounting which says that the owner and business…

Q: What do you mean by rate of return on the investment?

A: What do you mean by rate of return on the investment?

Q: What is payout period and how is it calculated?

A: Companies employ various methods in the process of selection of the most financially appropriate…

Q: What do we mean by internal rate of return (IRR)?

A: Internal rate of return : Internal rate of return is one of the techniques used in capital budgeting…

Q: what is the return asset that is used in financial statement analysis?

A: Here in this case we need to understand the meaning of return on asset ratio of financial statement…

Q: How can the Calculation of capital-recovery cost (with return)be done?

A: Capital Recovery Cost: When a company purchases or invest in some assets for the business…

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A: Rate of return is an expected profit on an investment by a investor. It is a rate at which investor…

Q: Explain an example how to calculate accounting rate of return.

A: The accounting rate of return (ARR) is the percentage rate of return expected on investment or asset…

Q: Describe the rules of accounting rate of return.

A: The accounting rate of return (ARR) is the percentage rate of return expected on investment or asset…

Q: How does accounting rate of return (ARR) differ from the internal rate ofreturn (IRR)?

A: Introduction: Capital budgeting is an investment criterion or decision making mechanism for…

Q: What is internal rate of return (IRR) method?

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Q: What is income approach measurement?

A: Step 1 The income approach is a real estate valuation tool that determines fair market value based…

Q: /hat is the exact rate of return?

A: MACHINE A         PV FACTOR PRESENTVALUE A 0 FIRST COST -8000   8000…

Q: Define the term Return on Common Equity? How does it measure profitability?

A: Click to see the answer

Q: Define cost of equity? How does it relate to the ‘required rate of return’ (r) on equities?

A: Definition of Cost Equity: Cost of equity is the return that a company requires for an investment or…

Q: How is the payback period is calculated?

A: Payback period is the amount or length of time taken by an investment to recover its cost.

Q: What four fundamental factors affect required rates of return(i.e., the cost of money)?

A: The minimum rate that is expected by an investor from the investment made in a project is referred…

Q: What is the amount of tmes-Interest earned?

A: Times Interest Earned: Times interest earned is a ratio which states with how many times the…

Q: How is gross profit calculated, and what does it represent?

A: Gross profit is the difference of amount obtained by subtracting Cost of goods sold from Net…

Q: What do you mean by the term "income approach"?

A: The income approach is a real estate valuation technique that is computed by dividing the…

Q: Describe the accrual accounting rate-of-return method. What are its main strengths and weaknesses?

A: Click to see the answer

Q: Explain the types Earnings?

A: Earning is the amount of income that an individual or organization receives during a year.

Q: economic entitiy assumption

A: Accounting Assumptions:                      Accounting professionals are guided by the accounting…

Q: what is equity analysis?

A: The person who takes the equity capital of the company is known as a stakeholder of the company. The…

Q: what is earning forecasting?

A: The act or process of using certain data to predict future earnings of a publicly-traded company.…

Q: What is a “required rate of return”? Why is it called the “cost ofmoney” or the “price of money”?

A: The required rate of return can be calculated by two methods, 1) Gordan's growth model  Gordan's…

Q: Where is net profit shown in balance sheet?

A: The profit of a corporation is referred to as net profits.

Q: Is the accounting rate of return (ARR) the same thing as the return on investment (ROI)?

A: Yes, Accounting rate of return (ARR) the same thing as the Return on investment (ROI). The…

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