When computing the accounting rate of return for a capital asset,which of the following is used as the equation's numerator?

Name: When computing the accounting rate of return for a capital asset,which of the following is used as the equation's numerator?
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Question

Quizplus · Accepted Answer

The numerator in the accounting rate of return equation is typically the average annual operating income from the asset. This is divided by the average amount invested in the asset to arrive at the accounting rate of return.

When Computing the Accounting Rate of Return for a Capital