Skip to content
    Business A-Level

    Accounting Rate of Return (ARR)

    What Accounting Rate of Return (ARR) means in Business A-Level, as defined for Eduqas.

    Definition of Accounting Rate of Return (ARR)

    Check what you remember

    Read the wording for your board, then hide it and explain Accounting Rate of Return (ARR) in your own words. Rough notes are fine. This is a self-check, with no mark or grade.

    Reference: Eduqas

    A measure of the average annual profit from an investment as a percentage of the initial investment.
    Eduqas · Component 2: Investment appraisal (study guide)

    Topics that use Accounting Rate of Return (ARR)

    Related terms

    Using Accounting Rate of Return (ARR) in the exam

    Check the command word and mark scheme for your exact question. After comparing your explanation with the reference, use the term in an answer on the linked topic. This practice does not predict an exam mark.

    Practise Business questions

    Create a free account to answer exam-style questions on this topic and get feedback on your answers.

    Start free

    A week of Premium from your first lesson · Then the free plan continues · No card, no charge

    All Business A-Level terms