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Exam CCP Topic 2 Question 97 Discussion

Actual exam question for AACE International's CCP exam
Question #: 97
Topic #: 2
An agricultural corporation that paid 53% in income tax wanted to build a grain elevator designed to last twenty-five (25) years at a cost of $80,000 with no salvage value. Annual income generated would be $22,500 and annual expenditures were to be $12,000.
Answer the question using a straight line depreciation and a 10% interest rate.
Which of the following is considered a measure of profitability?

Suggested Answer: A Vote an answer

Rate of return is a measure of profitability, as it indicates the percentage of profit earned on an investment relative to its cost. It is a key indicator of the efficiency with which a company uses its capital to generate profits. The other options (Annual Dividends, Total Assets, Annual Sales) are financial metrics but do not directly measure profitability. Therefore, the correct answer is A. Rate of return.

by Ward at Jan 14, 2025, 02:40 PM

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Here are all the actual test exam dumps for IT exams. Most people prepare for the actual exams with our test dumps to pass their exams. So it's critical to choose and actual test pdf to succeed.

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