"A measure of profitability computed by dividing the average annual operating income by the amount of the investment" is best described by which of the following terms?

Question

Quizplus · Accepted Answer

The given description best fits the concept of Accounting Rate of Return, which is calculated by dividing the average annual operating income by the amount invested. Net present value, discount rate, and internal rate of return are different methods used for capital budgeting and evaluating investment opportunities.

"A Measure of Profitability Computed by Dividing the Average Annual