Which of the following is calculated using ONLY accounting numbers?
A) Payback period
B) Proﬁtability index
C) Net present value
D) Internal rate of return
E) Average accounting return

Question

Quizplus · Accepted Answer

Average accounting return is calculated using only accounting numbers, such as net income and book value of assets. The other options require the use of time value of money concepts and/or cash flows.

Which of the Following Is Calculated Using ONLY Accounting Numbers