• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

June 2025 ACCA Exams

How was your exam? Comments & Instant poll >>

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for June 2025 exams.
Get your discount code >>

Rate of return

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Rate of return

  • This topic has 1 reply, 2 voices, and was last updated 6 years ago by John Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • June 8, 2018 at 4:53 am #457695
    aliansari14
    Member
    • Topics: 13
    • Replies: 28
    • ☆

    Hi Mr john,

    I was going through the open tuition mock exam for F2 and in section B Question 1 , they ask to find the accounting rate of return and i tried to find it but i wasn’t able to ,

    secondly, why do we have to subtract incremental costs from the cash flows each year and then find the net present value.

    and will i be tested on any other types of relevant costs in in non theory questions?

    my exam is in 4 days i would be thankful if you help 🙂

    June 8, 2018 at 8:54 am #457736
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54675
    • ☆☆☆☆☆

    The accounting rate of return is the average annual profit as a % of the average capital employed.

    When calculating NPV’s we look at all future incremental cash flows- the net of cash receipts and cash payments.

    More on relevant costs is not examined until Paper F5.

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • The topic ‘Rate of return’ is closed to new replies.

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • sadik.sadka on How to make the best use of OpenTuition
  • SONIC916 on Lessee accounting – ACCA (SBR) lectures
  • AkinMike on IASB Conceptual Framework – Introduction – ACCA Financial Reporting (FR)
  • AkinMike on IASB Conceptual Framework – Introduction – ACCA Financial Reporting (FR)
  • AliMusa12 on Accruals and Prepayments (part a) – ACCA Financial Accounting (FA) lectures

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in