The accounting rate of return differs from other methods in that it

1. Does not focus on cash flows.

2. The calculation is complex.

3. It ignores the time value of money.

4. None of these answer choices are correct.

50. Common-size statements are especially useful in comparing:

1. Supplemental information

2. A companys performance across time

3. Companies of the same size

4. Companies of different size

51. Which of the following is not a measure of liquidity?

1. Price earnings ratio

2. Working capital

3. Average collection period

4. Acid-test