What is a disadvantage associated with the use of the accounting rate of return method for assessing investment opportunities?
A) it is a method that is not widely understood by business.
B) it is based on an accrual approach rather than cash flows.
C) it ignores the time value of money.
D) Both B and C.
Correct Answer:
Verified
Q1: It is important to get investment decisions
Q2: What is the decision rule for the
Q4: What is the assessment method widely used
Q5: Which method for appraising investments is regarded
Q6: George is considering setting up a business
Q7: Which of these is an advantage of
Q8: The statement that is a disadvantage of
Q9: Timothy Moore, Managing Director of Tiles Ltd,
Q10: The time value of money is an
Q11: Which of these is not generally regarded
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents