A manager wants to know which investment decision will affect the bottom line of the financial statements according to Generally Accepted Accounting Principles. Which capital budgeting method would he choose?

Question

Quizplus · Accepted Answer

The Accounting Rate of Return (ARR) method directly relates to the impact on the financial statements, as it calculates the return on investment based on the accounting information, such as revenues and expenses, according to Generally Accepted Accounting Principles (GAAP).

A Manager Wants to Know Which Investment Decision Will Affect