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

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## MCQ on Accrual Accounting Rate of Return MethodQuiz 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