Question
What are super normal profits made by companies due to
an unprecedented event, as indicated in the para above, known as?Solution
Windfall gain (or windfall profit) is an unexpected gain in income from an unforeseen source/event. Windfall gains may take place due to sudden steep rise in prices of a commodity or extreme shortage of a resource, asset or product. For an individual, windfall gain could be a sudden spike in income due to one-time events like inheritance of property, money gained on selling property when its prices increase dramatically, etc. Windfall gain may also refer to gains from winning a lottery, betting income etc. A windfall tax is a one-off tax imposed by a government on a company on such windfall gains, which is over and above the normal rates of tax.
A supply comprising of two or more supplies shall be treated as the supply of that particular supply that attracts highest rate of tax.
Which of the following statement is true in case of bonus issue?
_________ is NOT a part of Monte Carlo Simulation.
The standard time for a task is 4 hours per unit at a wage rate of ₹60 per hour. In a period, 500 units were produced in 1,900 hours, and the actual w...
What does ‘working capital cycle’ (cash conversion cycle) measure?
For which of the following goods, the manufacturer is not allowed to opt for composition scheme:
According to the decision given in the case of Garner vs. Murray, solvent partners have to bear the loss due to insolvency of a partner and have to cate...
What is the lock-in period for ELSS (Equity Linked Savings Scheme) to be eligible for a deduction under Section 80C of the Income Tax Act in India?
If a government grant is received but later becomes refundable, how should it be accounted?
An audit that is conducted to investigate a specific area of suspicion, such as fraud, is known as a:
