question archive 1) describe accrual accounting rate of return method ? 2) strengths of the accrual accounting rate of return method ? 3) weaknesses of accrual accounting rate of return method ?
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1) describe accrual accounting rate of return method ?
2) strengths of the accrual accounting rate of return method ?
3) weaknesses of accrual accounting rate of return method ?
Answer:
1.
divides an accrual accounting measure of average annual income of a project by an accrual accounting measure of investment
2.
that it is simple, easy to understand, and considers profitability
3.
ignores the time value of money and does not consider the cash flows for a project.