Which of the following is/ are the drawbacks of Accounting Rate of Return criterion

Question

TuteeHUB · Accepted Answer

NA

TuteeHUB · Answer

It gives equal weightage to near flows and distant flows

TuteeHUB · Answer

It is calculated using the accounting income and not cash flows

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The cut off of ARR is arbitrarily fixed

TuteeHUB · Answer

All of the above

1.	Which of the following is/ are the drawbacks of Accounting Rate of Return criterion
A.	It gives equal weightage to near flows and distant flows
B.	It is calculated using the accounting income and not cash flows
C.	The cut off of ARR is arbitrarily fixed
D.	All of the above
Answer» E.

Discussion