What is the accounting rate of return?
Q: Distinguish the nominal rate of return from the real rate of return.
A:
Q: What is the profitability index? When is it used?
A: Capital investment analysis: Capital investment analysis is the process by which management plans,…
Q: Which are the Methods for Finding Rate of Return?
A: A Rate of Return (ROR) is the gain or loss of an investment over a certain period of time. When the…
Q: What are the Profit margins?
A: Answer: Profit margin represents a product, company or sector profitability. It nothing but the…
Q: What is earnings management?
A: Earnings refer to the amount earned by the business during the financial year. It may vary from year…
Q: What is the marginal rate of return? How is it calculated?
A: Answer: Marginal rate of return can be defined as the return obtained or received by means of…
Q: What are the advantages of balance sheet?
A: Financial Statement: A financial statement is the complete record of financial transactions that…
Q: Define the term profitability index?
A:
Q: Nhat is the exact rate of return?
A: The net gain or net loss of an investment over a predetermined time period is referred to as a rate…
Q: What is the internal rate of return?
A: Internal rate of return is the discount rate at which present value of cash inflows equals outflows…
Q: How to calculate the Profitability index?
A: Profitability Index: It is a measure used in capital budgeting of the project's or investment's…
Q: What are investment returns?
A: Investment returns are a performance measure used to evaluate a speculation’s adequacy or to think…
Q: ected rate of return concept differ from that of the rea
A: There are many method of valuation of stock based on expected rate and realized return and dividends…
Q: What is the relationship between profitability and efficiency, liquidity, investment, and efficiency…
A: (1) Financial Ratios will express financial Quantity concerning another financial ratio. (2) These…
Q: What is the difference between the possible returns and the expected return?
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Q: Explain profit-and-loss statement?
A: For financial reporting, there are three major financial statements which a business entity is…
Q: Which different terms are used to refer to rate of return?
A: Rate of return is the return that is expected by the investors from the investment made. It is…
Q: what is the projected balance sheet?
A: Balance Sheet: It is the financial that presents the company's assets, liabilities and shareholders'…
Q: How do you turn an income statement int a forecasted return? And how is it helpful?
A: Return means earn additional on invested amount. Return is a positive factor in every investment.…
Q: What is purchase returns?
A:
Q: Why is profit shown on liabilities side?
A: This is because of separate entity principle of accounting which says that the owner and business…
Q: What do you mean by rate of return on the investment?
A: What do you mean by rate of return on the investment?
Q: What is payout period and how is it calculated?
A: Companies employ various methods in the process of selection of the most financially appropriate…
Q: What do we mean by internal rate of return (IRR)?
A: Internal rate of return : Internal rate of return is one of the techniques used in capital budgeting…
Q: what is the return asset that is used in financial statement analysis?
A: Here in this case we need to understand the meaning of return on asset ratio of financial statement…
Q: How can the Calculation of capital-recovery cost (with return)be done?
A: Capital Recovery Cost: When a company purchases or invest in some assets for the business…
Q: What are the different terms used to refer to the rate of return?
A: Rate of return is an expected profit on an investment by a investor. It is a rate at which investor…
Q: Explain an example how to calculate accounting rate of return.
A: The accounting rate of return (ARR) is the percentage rate of return expected on investment or asset…
Q: Describe the rules of accounting rate of return.
A: The accounting rate of return (ARR) is the percentage rate of return expected on investment or asset…
Q: How does accounting rate of return (ARR) differ from the internal rate ofreturn (IRR)?
A: Introduction: Capital budgeting is an investment criterion or decision making mechanism for…
Q: What is internal rate of return (IRR) method?
A: NPV shows the excess of PV of all the cash inflows over the initial outlay of the project. It is a…
Q: What is income approach measurement?
A: Step 1 The income approach is a real estate valuation tool that determines fair market value based…
Q: /hat is the exact rate of return?
A: MACHINE A PV FACTOR PRESENTVALUE A 0 FIRST COST -8000 8000…
Q: Define the term Return on Common Equity? How does it measure profitability?
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Q: Define cost of equity? How does it relate to the ‘required rate of return’ (r) on equities?
A: Definition of Cost Equity: Cost of equity is the return that a company requires for an investment or…
Q: How is the payback period is calculated?
A: Payback period is the amount or length of time taken by an investment to recover its cost.
Q: What four fundamental factors affect required rates of return(i.e., the cost of money)?
A: The minimum rate that is expected by an investor from the investment made in a project is referred…
Q: What is the amount of tmes-Interest earned?
A: Times Interest Earned: Times interest earned is a ratio which states with how many times the…
Q: How is gross profit calculated, and what does it represent?
A: Gross profit is the difference of amount obtained by subtracting Cost of goods sold from Net…
Q: What do you mean by the term "income approach"?
A: The income approach is a real estate valuation technique that is computed by dividing the…
Q: Describe the accrual accounting rate-of-return method. What are its main strengths and weaknesses?
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Q: Explain the types Earnings?
A: Earning is the amount of income that an individual or organization receives during a year.
Q: economic entitiy assumption
A: Accounting Assumptions: Accounting professionals are guided by the accounting…
Q: what is equity analysis?
A: The person who takes the equity capital of the company is known as a stakeholder of the company. The…
Q: what is earning forecasting?
A: The act or process of using certain data to predict future earnings of a publicly-traded company.…
Q: What is a “required rate of return”? Why is it called the “cost ofmoney” or the “price of money”?
A: The required rate of return can be calculated by two methods, 1) Gordan's growth model Gordan's…
Q: Where is net profit shown in balance sheet?
A: The profit of a corporation is referred to as net profits.
Q: Is the accounting rate of return (ARR) the same thing as the return on investment (ROI)?
A: Yes, Accounting rate of return (ARR) the same thing as the Return on investment (ROI). The…
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