Question

Losses are ignored while calculating the average profit True/False​

Answer 1

Explanation:

true is the answer mark me as brainliest

Answer 2

This statement is incorrect.

• Losses are ignored while calculating the average profit this statement is false.
• Losses are even taken into consideration while calculating average profit.
• When we calculate goodwill by average method first method is that we add the previous year's profit and we deduct the losses of the firm.
• Then we divide it by the number of years we have taken the profit or loss into the consideration.
• Whether the firm incurs profit or loss each and everything is taken into the consideration.