Question

22)For finding unit value capital is divided by
A)Profit sharing ratio
B)Capital ratio
C) Gain ratio
D)Average ratio
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Answer 1

Answer:

A) Profit sharing ratio

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Answer 2

PROFIT SHARING RATIO

For finding unit value capital is divided by PROFIT SHARING RATIO

GETTING TO KNOW MORE ABOUT PROFIT SHARING RATIO:

* 'Profit Sharing Ratio' is a word that is commonly used in partnership businesses. Simply said, this is the proportion in which the partners split the profits in the firm.

* The new profit-sharing ratio is the percentage in which a firm's existing and new partners agree to split the company's future profits.

* When a new partner joins a firm, it is vital to determine the new profit-sharing ratio since he or she will be eligible to share earnings in the future.

* If this ratio is not agreed upon at the time of a new partner's admittance, the profit will be dispersed equally among all current and new partners.