The accounting rate of return model shows the effects of an investment on a company's financial statements.

Name: The accounting rate of return model shows the effects of an investment on a company's financial statements.
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The accounting rate of return model calculates the average net income earned by an investment and compares it to the average book value of the investment. This calculation is based on the company's financial statements, making statement A true.

The Accounting Rate of Return Model Shows the Effects of an Investment