Question : Average of the profit of past agreed years is known as __________.
Option 1: super profit
Option 2: normal profit
Option 3: average profit
Option 4: capital employed

Question

Question : Average of the profit of past agreed years is known as __________.

Option 1: super profit

Option 2: normal profit

Option 3: average profit

Option 4: capital employed

Team Careers360 · Accepted Answer

Correct Answer: average profit

Solution : Answer = average profit

The average profit of past agreed years refers to the mean value of profits earned over a specific period. It provides a standard measure of the company's historical earnings performance, serving as a reference point for assessing current and future profitability. This average profit helps in evaluating business stability and growth potential.

Average profit = total profits/no. of years
Hence, the correct option is 3.

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Question : Average of the profit of past agreed years is known as __________.Option 1: super profit Option 2: normal profit Option 3: average profit Option 4: capital employed

Related Questions

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Question : The Formula for Capitalisation of Super Profit Method is:

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Question : Average of the profit of past agreed years is known as __________.
Option 1: super profit
Option 2: normal profit
Option 3: average profit
Option 4: capital employed

Question :
The Formula for Capitalisation of Super Profit Method is: