A. accrual accounting rate of return
B. accounting rate of return
C. nominal rate of return
D. both a and b
Related Mcqs:
- An investment is multiplied to required rate of return, to calculate: _____________?
A. congruent cost of investment
B. transfer cost of investment
C. operating cost of investment
D. imputed cost of investment - The rupee amount for required return of investment is subtracted from income to calculate _____________?
A. net income
B. after tax income
C. residual income
D. operating income - The rate of return to cover a risk of investment and decrease in purchasing power, as a result of inflation is known as _________?
A. nominal rate of return
B. accrual accounting rate of return
C. real rate of return
D. required rate of return - The formula to calculate return on investment, according to profitability analysis in DuPont method is ____________?
A. return on sales * investment turnover
B. return on sales + investment turnover
C. return on sales – investment turnover
D. investment turnover + residual income - The return on sales is multiplied to investment turnover to calculate ___________?
A. residual income
B. return on investment
C. return on sales
D. investment turnover - If the required rate of return is 13%, operating income is $375000 and the total investment is $2650000, then the residual income would be ____________?
A. $30,500
B. $20,500
C. $25,500
D. $32,500 - The rate of required return to cover the risk of investment, in absence of inflation is classified as ____________?
A. real rate of return
B. required rate of return
C. nominal rate of return
D. none of above - If the invested capital is $150000 and target rate of return on investment is 16%, then the targeted annual operating income would be ___________?
A. $27,000
B. $26,000
C. $24,000
D. $25,000 - If the net initial investment is $985000, returned working capital is $7500, then an average investment over five years will be ___________?
A. $596,300
B. $485,300
C. $496,250
D. $486,250 - The profit forgone by capital investment in inventory rather than investment of capital to somewhere else is classified as ____________?
A. relevant purchase order costs
B. relevant inventory carrying costs
C. irrelevant inventory carrying costs
D. relevant opportunity cost of capital
