Accounting Rate Of Return (ARR)

Accounting Rate Of Return (ARR),

How Do You Define Accounting Rate Of Return (ARR)?

  • Accounting Rate Of Return (ARR) definition is: An accounting return (ARR) is a formula that reflects the expected rate of return on an investment or asset in excess of the initial investment cost. The FER formula divides the average income of an asset by the initial investment of the company to achieve the distribution ratio or rate of return that can be expected in the life of the asset or project. The FER does not take into account the time value of money or cash flow, which can be an integral part of running a business.

    • The Return on Payment (ARR) formula is useful for determining the percentage of annual return on a project.
    • You can use ARR when considering multiple projects as it will give you the expected return on investment for each project.
    • However, FER does not differentiate between investments that generate different cash flows over the life of the project.

Literal Meanings of Accounting Rate Of Return (ARR)


Meanings of Accounting:
  1. The process or process of restoring financial accounts.

Sentences of Accounting
  1. Alleged investigation of illegal accounting

Synonyms of Accounting

banking, fiscal matters, financial affairs, pecuniary matters, economics, commerce, investment, money matters, money management, accounting, business


Meanings of Rate:
  1. Set a pattern or value for a particular scale (object).

  2. Think of it as a particular quality, standard or area.

  3. A measure, quantity or frequency that is usually measured in relation to another quantity or unit of measure.

  4. Scolding (someone) in anger

Sentences of Rate
  1. This event was considered a great success.

  2. Promotion price

Synonyms of Rate

amount, charge, weigh up, judge to be, deem to be, figure, find to be, compute, hold to be, fare, appraise, adjudge, gauge, value, price, tariff, consider to be, reckon to be, think to be, calculate, cost, put a value on


Meanings of Of:
  1. It shows the relationship between the part and the whole.

  2. Indicates the relationship between scale or size and value.

  3. Refers to the relationship between two organizations, usually the organization of the association.

  4. It shows the relationship between the address and the reference point.

  5. It represents the relationship between a general type or type and a particular object belonging to that category.

  6. After the noun that comes from the verb or related to it

  7. Identify the component or substance that makes the difference.

  8. Express the hour for the next hour.

Sentences of Of
  1. 5% increase

  2. North of Chicago

  3. Nice to meet you

  4. This will be the quarter in New York

Synonyms of Of

in, of, by, carried out by, made by, done by, caused by, from


Meanings of Return:
  1. To come or return to a place or person.

  2. Give, keep or return (something) to a place or someone.

  3. Return or receive (win)

  4. (Selector) Select (a person or party) for the office.

  5. Keep changing the direction (of the wall), especially at right angles.

  6. Walking or returning to a place or activity.

  7. An official report or statement was sent in response to the formal request

  8. Choice for office.

  9. The button is pressed to return the electric typewriter carriage to a certain position. In the word processing program, a key is pressed on the computer keyboard to return the carriage or to indicate the end of the data command or string.

  10. Part 2 away from the line, for example facing the house or opening a window.

Sentences of Return
  1. Return to Canada in the fall

  2. Fill out the registration form and send it to this address

  3. The company reported a profit of 4. 3.3 million

  4. Democrats sent him back to the third district

  5. Celebrate your safe return from war

  6. Product areas continue to grow for maximum profit.

  7. Census results

  8. We are campaigning for the return of Young and Elkins

  9. The master bedroom is at the back of the first floor, with windows overlooking the river.

Synonyms of Return

gain, revenue, summary, send back, log, put in power, give back, select, vote in, clear, percentage, report, go back, come home, statement, paper, realize, opt for, bring in, adopt, interest, choose