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Firm has earned exceptionally high profits from a contract which will not be renewed. In such a cash the profit from this contract will not be included in …
- a)Profit sharing of the partners
- b)Calculation of the goodwill
- c)Both
- d)None
Correct answer is option 'B'. Can you explain this answer?
Verified Answer
Firm has earned exceptionally high profits from a contract which will ...
Because it is not related to the admission or retirement of the partners .At the time of admission or retirement goodwill will be calculated
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Firm has earned exceptionally high profits from a contract which will ...
Because it is not related to the admission or retirement of the partners .At the time of admission or retirement goodwill will be calculated...
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Firm has earned exceptionally high profits from a contract which will ...
The firm's future financial statements. This is because the contract will not generate any revenue for the firm in the future, and therefore, the profit from this contract is considered a one-time event and not part of the firm's ongoing operations.
When preparing financial statements, firms typically only include profits from contracts that are expected to generate future revenue. This provides a more accurate representation of the firm's ongoing profitability and financial performance.
However, it is important for the firm to properly account for and manage the profits earned from this contract. The firm may choose to allocate these profits towards other areas of the business or invest them in long-term projects. Proper financial planning and budgeting will be necessary to ensure that the firm can sustain its operations without relying on the profits from this contract in the future.
When preparing financial statements, firms typically only include profits from contracts that are expected to generate future revenue. This provides a more accurate representation of the firm's ongoing profitability and financial performance.
However, it is important for the firm to properly account for and manage the profits earned from this contract. The firm may choose to allocate these profits towards other areas of the business or invest them in long-term projects. Proper financial planning and budgeting will be necessary to ensure that the firm can sustain its operations without relying on the profits from this contract in the future.
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Firm has earned exceptionally high profits from a contract which will not be renewed. In such a cash the profit from this contract will not be included in …a)Profit sharing of the partnersb)Calculation of the goodwillc)Bothd)NoneCorrect answer is option 'B'. Can you explain this answer?
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Firm has earned exceptionally high profits from a contract which will not be renewed. In such a cash the profit from this contract will not be included in …a)Profit sharing of the partnersb)Calculation of the goodwillc)Bothd)NoneCorrect answer is option 'B'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Firm has earned exceptionally high profits from a contract which will not be renewed. In such a cash the profit from this contract will not be included in …a)Profit sharing of the partnersb)Calculation of the goodwillc)Bothd)NoneCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Firm has earned exceptionally high profits from a contract which will not be renewed. In such a cash the profit from this contract will not be included in …a)Profit sharing of the partnersb)Calculation of the goodwillc)Bothd)NoneCorrect answer is option 'B'. Can you explain this answer?.
Firm has earned exceptionally high profits from a contract which will not be renewed. In such a cash the profit from this contract will not be included in …a)Profit sharing of the partnersb)Calculation of the goodwillc)Bothd)NoneCorrect answer is option 'B'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Firm has earned exceptionally high profits from a contract which will not be renewed. In such a cash the profit from this contract will not be included in …a)Profit sharing of the partnersb)Calculation of the goodwillc)Bothd)NoneCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Firm has earned exceptionally high profits from a contract which will not be renewed. In such a cash the profit from this contract will not be included in …a)Profit sharing of the partnersb)Calculation of the goodwillc)Bothd)NoneCorrect answer is option 'B'. Can you explain this answer?.
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Firm has earned exceptionally high profits from a contract which will not be renewed. In such a cash the profit from this contract will not be included in …a)Profit sharing of the partnersb)Calculation of the goodwillc)Bothd)NoneCorrect answer is option 'B'. Can you explain this answer?, a detailed solution for Firm has earned exceptionally high profits from a contract which will not be renewed. In such a cash the profit from this contract will not be included in …a)Profit sharing of the partnersb)Calculation of the goodwillc)Bothd)NoneCorrect answer is option 'B'. Can you explain this answer? has been provided alongside types of Firm has earned exceptionally high profits from a contract which will not be renewed. In such a cash the profit from this contract will not be included in …a)Profit sharing of the partnersb)Calculation of the goodwillc)Bothd)NoneCorrect answer is option 'B'. Can you explain this answer? theory, EduRev gives you an
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