Question : What are super profits?
Option 1: Actual profit - Normal Profit
Option 2: Normal profit - Actual Profit
Option 3: Actual profit + Normal Profit
Option 4: None of the above
Correct Answer: Actual profit - Normal Profit
Solution : Super profit is the excess of average profit over normal profit, i.e. Super Profit = Average Profit - Normal Profit. Hence, the correct option is 1.
Question :
The Formula for Capitalisation of Super Profit Method is:
Question : Under the super profit method, goodwill is calculated by
Question : Weighted average profit method of calculating goodwill is used when
Question : The remuneration of the entrepreneur in production is
Question : Average of the profit of past agreed years is known as __________.
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