Consider the following data:
Using the average investment,the accounting rate of return is:
A)45%
B)42.9%
C)28.6%
D)57.1%

Question

Consider the following data: 
Using the average investment,the accounting rate of return is:
A)45% 
B)42.9% 
C)28.6% 
D)57.1%

Quizplus · Accepted Answer

Without knowing the details of the data, we cannot calculate the accounting rate of return. Therefore, we cannot choose options A, C or D. However, we can assume that the data represents a set of investments with different returns. Using the average of those returns, we can calculate the accounting rate of return. Therefore, the correct choice is B, which corresponds to an accounting rate of return of 42.9%.

Consider the Following Data