Which of the following is a capital budgeting method used to screen potential investments?
A) return on assets
B) acid test ratio
C) accounting rate of return
D) debt-to-equity ratio

Question

Quizplus · Accepted Answer

The accounting rate of return is a capital budgeting method used to screen potential investments. It measures the expected rate of return on an investment compared to the initial investment cost. Options A, B, and D are not capital budgeting methods used to screen potential investments.

Which of the Following Is a Capital Budgeting Method Used