the accounting rate of return is based on cash flows, rather than net income, in its calculation. group startstrue or falsetrue, unselectedfalse, unselected

Respuesta :

It is false that the accounting rate of return is based on cash flows, rather than net income, in its calculation.

What is accounting rate of return?

The accounting rate of return (ARR) formula can be used to calculate a project's annual percentage rate of return.

ARR is calculated as the average annual profit divided by the initial investment. The expected rate of return from each project is provided by ARR, which is commonly used when considering multiple projects.

The accounting rate of return, also known as the return on investment, expresses the annual accounting profits generated by an investment as a percentage of the initial investment.

Thus, the given statement is false.

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