The rate of return is the only capital budgeting method that uses accrual accounting.

Name: The rate of return is the only capital budgeting method that uses accrual accounting.
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The rate of return method uses accrual accounting to calculate the average rate of return on an investment over its useful life. However, other capital budgeting methods, such as the payback period, net present value, and internal rate of return, use cash flows and not accrual accounting.

The Rate of Return Is the Only Capital Budgeting Method