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

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Praveen Singh

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📊 Financial Management

Q. 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

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✅ Correct Answer: (D) All of the above

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