Normal Profit Calculation Quiz
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Questions and Answers

If the capital employed is Rs. 2,00,000 and the normal rate of return is 12%, what is the normal profit?

  • $Rs. 20,000$
  • $Rs. 18,000$
  • $Rs. 24,000$ (correct)
  • $Rs. 22,000$

    • What factors are needed to calculate normal profit?

  • Operating expenses and revenue
  • Gross profit and net profit
  • Fixed costs and variable costs
  • Capital employed and normal rate of return (correct)

    • What does accounting measure?

  • Number of employees in an organization
  • Results of economic activities of an organization (correct)
  • Market share of an organization
  • Sales revenue of an organization

    • Who are the stakeholders to whom accounting information is conveyed?

    <p>Investors, creditors, management, and regulators</p> Signup and view all the answers

    Which field of accounting focuses on reporting financial information to external users?

    <p>Financial accounting</p> Signup and view all the answers

    What does the normal rate of return represent?

    <p>Expected rate of return from capital in a business of similar nature and risk</p> Signup and view all the answers

    What is the primary focus of management accounting?

    <p>Measurement, analysis, and reporting of information for internal use by management</p> Signup and view all the answers

    What are practitioners of accounting known as?

    <p>Accountants</p> Signup and view all the answers

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