Average Accounting Return

Business, Legal & Accounting Glossary

Definition: Average Accounting Return


Average Accounting Return


Full Definition of Average Accounting Return


A measure of the return on an investment over a given period, equal to average projected earnings minus taxes, divided by average book value over the duration of the investment. This measure can also be calculated using average projected earnings without excluding taxes, or average projected earnings less taxes and depreciation. This ratio measures how well investment assets are being used to generate income.


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Definition Sources


Definitions for Average Accounting Return are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 20th November, 2021 | 0 Views.