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  3. Study Set
    Cost Accounting Study Set 1
  4. Exam
    Exam 20: Capital Budgeting: Methods of Investment Analysis
  5. Question
    The Accrual Accounting Rate of Return Method Has a Significant
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The Accrual Accounting Rate of Return Method Has a Significant

Question 103

Question 103

True/False

The accrual accounting rate of return method has a significant weakness for use in making capital budgeting decisions because it does not track cash flows and it ignores the time value of money.

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