A. Rs. 2,000
B. Rs. 2,500
C. Rs. 3,000
D. Rs. 3,500
Answer: Option B
This Question Belongs to Commerce >> Accounting
Accounting provides information on
A. Cost and income for managers
B. Company's tax liability for a particular year
C. Financial conditions of an institutions
D. All of the above
The long term assets that have no physical existence but are rights that have value is known as
A. Current assets
B. Fixed assets
C. Intangible assets
D. Investments
The assets that can be converted into cash within a short period (i.e. 1 year or less) are known as
A. Current assets
B. Fixed assets
C. Intangible assets
D. Investments
Patents, Copyrights and Trademarks are
A. Current assets
B. Fixed assets
C. Intangible assets
D. Investments
Formula of finding Super Profit = Average Profit - Normal Profit
Average Profit = 8000 + 9000 + 7000 + 8500 + 10000 divided by sum of all profit
= 42500 / 5
= 8500
Normal Profit = Capital * Normal Profit ratio 7.5%
= 80000 * 7.5 /100
= 6000
Here, = 8500 - 6000
= 2500
So, the answer (B) is true.
Formula of finding Super Profit = Average Profit - Normal Profit