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Accrual Accounting Rate of Return Method Multiple Choice Questions (MCQ) PDF Download

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The MCQ: Categories of cash flows include; "Accrual Accounting Rate of Return Method" App Download (Free) with answers: Net initial investment; Cash flow from operations after paying taxes; Cash flow from terminal disposal after paying taxes; to learn accounting degree courses. Practice Accrual Accounting Rate of Return Method Quiz Questions, download Google eBook (Free Sample) for online business management degree programs.

Accrual Accounting Rate of Return Method MCQs: Questions and Answers

MCQ 1:

If the net initial investment is \$985000, returned working capital is \$7500, then an average investment over five years will be

1. \$596,300
2. \$485,300
3. \$496,250
4. \$486,250
MCQ 2:

The categories of cash flows include

1. net initial investment
2. cash flow from operations after paying taxes
3. cash flow from terminal disposal after paying taxes
4. all of above
MCQ 3:

The sum of returned working capital and net initial investment is divided by 2 to calculate

1. increase in operating income
2. average investment over five years
3. average capital invested
4. average rate of return
MCQ 4:

Annual earned income is divided from a project by capital invested to calculate

1. accrual accounting rate of return
2. returned working capital
3. increase in expected average annual
4. decrease in expected average annual
MCQ 5:

The working capital cash outflow, cash outflow to buy machine and cash inflow from machine are the examples of

1. cash flow from operations
2. terminal disposal of investment
3. net initial investment
4. average return on investment

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