The average accounting rate of return is most similar to which one of the following ratios?
A) Proﬁt margin.
B) Return on assets.
C) Return on equity.
D) Payout ratio.
E) Plowback ratio.

Question

Quizplus · Accepted Answer

The average accounting rate of return measures the average amount of accounting profit a company generates relative to its investment in assets. This is similar to the return on assets ratio, which also measures how effectively a company is using its assets to generate earnings.

The Average Accounting Rate of Return Is Most Similar to Which