Which one of the following methods of analysis is most similar to computing the return on assets (ROA)?
A)Internal rate of return
B)Profitability index
C)Average accounting return
D)Net present value
E)Payback

Question

Quizplus · Accepted Answer

The Average Accounting Return (AAR) is most similar to the Return on Assets (ROA) as both are accounting-based measures that use net income and book values rather than cash flows or market values.

Which One of the Following Methods of Analysis Is Most