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Which Three of the Following Accurately Relate to the Use

Question 7

Multiple Choice

Which three of the following accurately relate to the use of the accounting rate of return?


A) The method of calculating the accounting rate of return has been standardised and is widely accepted.
B) Accounting rate of return takes account of the time value of money.
C) Practitioners use a variety of approaches when calculating the accounting rate of return.
D) Accounting rate of return takes account of assets devoted to a project or business activity.

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