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State Whether the following Statement is True or False: Normal Profit − Actual Profit = Super Profit.

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Question

State Whether the following Statement is True or False:

Normal Profit − Actual Profit = Super Profit.

True or False
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Solution

The statement is false.

Explanation:

The correct formula is:

Super Profit = Actual Profit − Normal Profit

Super profit is the excess of actual profit earned by the firm over the normal profit expected from the business.

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Chapter 2: Change in Profit Sharing Ratio among the Existing Partners - OBJECTIVE TYPE QUESTIONS [Page 2.97]

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D. K. Goel Accountancy Part A Volume 1 and 2 [English] Class 12
Chapter 2 Change in Profit Sharing Ratio among the Existing Partners
OBJECTIVE TYPE QUESTIONS | Q (B) 18. | Page 2.97
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