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In case a company earns a profit, how is the net profit calculated for the purpose of calculating managerial remuneration?
  • a)
    Gross profit + Usual working charges - Tax liability
  • b)
    Gross profit + Subsidies received - Repair expenses
  • c)
    Gross profit + Profit on sale of fixed assets - Bonus paid
  • d)
    Gross profit + Tax liability - Depreciation
Correct answer is option 'C'. Can you explain this answer?
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In case a company earns a profit, how is the net profit calculated for...
When calculating net profit for the purpose of managerial remuneration in case of a company earning a profit, the formula is Gross profit + Profit on sale of fixed assets - Usual working charges - Bonus or commission paid or payable to company staff - Tax liability by central govt. except income tax liability - Interest on mortgage - Repair expenses - Normal depreciation - Liability of legal charges/damages - Bad debts.
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In case a company earns a profit, how is the net profit calculated for the purpose of calculating managerial remuneration?a)Gross profit + Usual working charges - Tax liabilityb)Gross profit + Subsidies received - Repair expensesc)Gross profit + Profit on sale of fixed assets - Bonus paidd)Gross profit + Tax liability - DepreciationCorrect answer is option 'C'. Can you explain this answer?
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In case a company earns a profit, how is the net profit calculated for the purpose of calculating managerial remuneration?a)Gross profit + Usual working charges - Tax liabilityb)Gross profit + Subsidies received - Repair expensesc)Gross profit + Profit on sale of fixed assets - Bonus paidd)Gross profit + Tax liability - DepreciationCorrect answer is option 'C'. Can you explain this answer? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about In case a company earns a profit, how is the net profit calculated for the purpose of calculating managerial remuneration?a)Gross profit + Usual working charges - Tax liabilityb)Gross profit + Subsidies received - Repair expensesc)Gross profit + Profit on sale of fixed assets - Bonus paidd)Gross profit + Tax liability - DepreciationCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for In case a company earns a profit, how is the net profit calculated for the purpose of calculating managerial remuneration?a)Gross profit + Usual working charges - Tax liabilityb)Gross profit + Subsidies received - Repair expensesc)Gross profit + Profit on sale of fixed assets - Bonus paidd)Gross profit + Tax liability - DepreciationCorrect answer is option 'C'. Can you explain this answer?.
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