The accounting rate of return is also known as the

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The accounting rate of return is also known as the unadjusted rate of return. It is a financial ratio that measures the profitability of an investment, usually expressed as a percentage of total investment cost. The accounting rate of return does not take into account the time value of money or the length of the investment. Hence, it is also referred to as an unadjusted rate of return. The internal rate of return and return on investment are different methods of calculating the return on investment, and neither is synonymous with the accounting rate of return.

The Accounting Rate of Return Is Also Known as the