Accountancy, asked by juhijoshi936, 8 months ago

if super profit is zero or in minus ,then what is called about good will​

Answers

Answered by raahulsharan26
8

Answer:

If the amount of super profit is negative,it indicates that there is no or negative goodwill of that business. it also shows that the company has very low value in market.

Answered by shilpa85475
0

The difference between the expected future profit and the usual profit is known as super profit. It is a method of calculating the additional earnings made by a company. The value of super-profits is multiplied by a specified quantity to calculate goodwill. If the quantity of super profit is negative, it means that the company has no or negative goodwill. It also demonstrates that the company has a relatively low market value.

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