# Accrual Accounting Rate of Return Method MCQs Quiz Online Tests pdf Download

Practice accrual accounting rate of return method MCQs, accounting MCQ for online test prep. Capital budgeting and cost benefit analysis quiz has multiple choice questions (MCQ), accrual accounting rate of return method quiz questions and answers as if net initial investment is $985000, returned working capital is $7500, then an average investment over five years will be, answer key with choices as $596,300, $485,300, $496,250 and $486,250 for competitive exam prep. Free study guide is to learn accrual accounting rate of return method quiz online with MCQs to practice test questions with answers. Accrual Accounting Rate of Return Method Video

## MCQs on Accrual Accounting Rate of Return Method Quiz pdf Download

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

- $596,300
- $485,300
- $496,250
- $486,250

C

MCQ. Categories of cash flows include

- net initial investment
- cash flow from operations after paying taxes
- cash flow from terminal disposal after paying taxes
- all of above

D

MCQ. Sum of returned working capital and net initial investment is divided by 2 to calculate

- increase in operating income
- average investment over five years
- average capital invested
- average rate of return

B

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

- accrual accounting rate of return
- returned working capital
- increase in expected average annual
- decrease in expected average annual

A

MCQ. Working capital cash outflow, cash outflow to buy machine and cash inflow from machine are examples of

- cash flow from operations
- terminal disposal of investment
- net initial investment
- average return on investment

C