Question

Select all that apply

The simple rate of return Blank______.



Multiple select question.

is calculated using cash flows rather than revenue and expense


fluctuates from year to year along with fluctuations in revenue and expense


discounts future net operating income back to the present


ignores the time value of money

Answer 1

The correct selections for the simple rate of return are:

- is calculated using cash flows rather than revenue and expense
- ignores the time value of money

The simple rate of return typically looks at cash flows rather than revenues and expenses, and it does not account for the time value of money. The other options do not accurately describe the simple rate of return.