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accounting rate of return

(Dictionary)

Author:
Harold Averkamp, CPA, MBA

Definition

An indicator of profitability that is measured by dividing the accounting net income by the amount invested.

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About the Author

Harold Averkamp

For the past 52 years, Harold Averkamp (CPA, MBA) has
worked as an accounting supervisor, manager, consultant, university instructor, and innovator in teaching accounting online. He is the sole author of all the materials on AccountingCoach.com.

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