A formula for the accounting rate of return is
A) average income/initial investment
B) initial investment/annual cash flow
C) annual cash flow/initial investment
D) initial investment/average income
E) (average income + initial investment)/initial investment
A
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Indicate whether the statement is true or false
Horizontal analysis is performed when:
a. total assets are set at 100% and all other balances are a percentage of total assets. b. the percentage change in the balance sheet and income statement numbers is computed for one period to the next. c. there is a need to calculate and compare key ratios from period to period. d. income statement amounts are shown as a percentage of total sales.
The five economic attributes that are normally studied are demand, supply, manufacturing, ____________________, and investing and financing
Fill in the blank(s) with correct word
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