Which of the following is calculated using ONLY accounting numbers?
A) Payback period
B) Profitability index
C) Net present value
D) Internal rate of return
E) Average accounting return

Question

Quizplus · Accepted Answer

The Average Accounting Return (AAR) is calculated using only accounting numbers, specifically from financial statements, without considering the time value of money or cash flow projections, unlike the other options listed.

Which of the Following Is Calculated Using ONLY Accounting Numbers