The accounting rate of return is also known as the
A)simple rate of return.
B)internal rate of return.
C)present value of an investment.
D)required rate of return.

Question

Quizplus · Accepted Answer

The accounting rate of return is also known as the simple rate of return. The other options listed are different concepts in finance and accounting. The internal rate of return is a measure of profitability that takes into account the time value of money, the present value is a calculation of the current value of future cash flows, and the required rate of return is the minimum rate of return an investor expects to earn on an investment.

The Accounting Rate of Return Is Also Known as the