Which of the following is a weakness of the accounting rate of return?

Question

Quizplus · Accepted Answer

The weakness of the accounting rate of return is that it does not consider both cash flows and the time value of money. It only focuses on accounting profits and does not take into account when cash is actually received, nor does it adjust for the fact that a dollar received in the future is worth less than a dollar received today due to inflation and other factors.

Which of the Following Is a Weakness of the Accounting