# Accrual Accounting Rate of Return Method MCQs Test Online pdf Download

Practice MCQs on accrual accounting rate of return method with accounting tests for online test prep and learning. Free study guide has multiple choice questions (MCQ) with accrual accounting rate of return method quiz as if net initial investment is $985000 and returned working capital is $7500 then an average investment over five years will be, answering options $596,300, $485,300, $496,250 and $486,250 for exam prep. Study to learn accrual accounting rate of return method quiz online with MCQs to practice test questions with answers.

## MCQs on Accrual Accounting Rate of Return Method

MCQ. If net initial investment is $985000 and 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 are included

- 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. Method which divides annual earned income 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 [dispose????] of machine are examples of

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

C