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Home Q & A Board Other Fields Homework Help Business Accounting
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jerico jerico
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9 years ago
Which of the following statements is true of accrual accounting rate of return (AARR) method and internal rate of return (IRR) method?
A) AARR method calculates the return in absolute terms, whereas IRR method calculates the result in terms of percentage.
B) The AARR method calculates the return using operating-income numbers after considering accruals and taxes, whereas the IRR method calculates the return using after-tax cash flows and the time value of money.
C) The AARR method calculates the return considering the time value of money, whereas the IRR method calculates the return ignoring the time value of money.
D) The AARR method considers cash flows, whereas the IRR method considers operating income.
Textbook 
Cost Accounting

Cost Accounting


Edition: 14th
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cyborgcyborg
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jerico Author
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#2
9 years ago
This solved my problem perfectly, thank you for your kind input.
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#3
9 years ago
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