Define accounting rate of return
What do you understand by the term accounting rate of return?
Expert
Accounting rate of return is also named as Average rate of return that gives the financial ratio employed in capital budgeting. The ratio takes time value of money factor that computes the return and the net income can be created from the proposed capital investment. It is employed to explain the percentage return. The method of computation is illustrated below: ARR= Average profit/average investment
As per schedule XIV of Companies Act, 1956 how are the fixed assets classified to evaluate the depreciation?
Rs. Sales 2,40,000 Variable costs 1,44,000 Fixed costs 26,000 Profit before tax 70,000 Rate of tax 40% Firm is proposing to buy the new plant that could generate extra annual profit of Rs. 10,000. The fixed cost of new plant is expected to Rs. 4000. New plant would increase sales volume by Rs. 40,00
Write down the steps in procurement of material?
Write down the main Current Assets?
Accounting Theory 7edition, by Godfrey J., Hodgson A., Tarca A., Hamilton J., and Holmes S. Chapter 2: Theory in Action 2.2 “Normative Theories of Investment” Chapter 3: Theory in Action 3.1 “Companies should come clean on the value of leases on their books” Chapter 5: Theory in A
Write down the procedure of capital budgeting?
Write down the various elements of costs?
Give a brief introduction of the term ‘accounting concepts’?
Briefly explain the main stages for computing the total cost per unit under the absorption costing system.
Give a brief introduction of the term time value of money? What are the methods employed for this?
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