Keyword Analysis & Research: superprofit


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Frequently Asked Questions

What is meant by super profit?

Super profit is the method in which an excess of average profits over normal profits. Under this method, goodwill is estimated on the basis of super-profits.

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When is super profit usually taken into consideration?

It is usually taken into consideration at the time of mergers and acquisitions. The amount paid to a company by the acquiring company over and above the market value of the company is known as goodwill. Super profit is the excess of estimated future profit than the normal profit.

What is the difference between super profit and goodwill?

Super profit is the excess of estimated future profit than the normal profit. It is a way of determining the extra profits that are earned by the business. The goodwill is determined by multiplying the value of super profits by a certain number (that number being the number of years of purchase).


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