JAMB Accounts Principles of Accounts 2019 Paper

Concept:The average profit is the total profit earned over a period divided by the number of years in that period.It is commonly used to value a business' goodwill.Explanation:The provided profits for the period are $14,000$, $24,000$, $10,000$, and $16,000$.There are four yearly profit figures.First, find the sum of all the profits:$$14,000 + 24,000 + 10,000 + 16,000 = 64,000$$Next, divide the total profit by the number of years:$$\frac{64,000}{4} = 16,000$$Thus, the average profit is $\text{₦}16,000$.Answer:The average profit is $\text{₦}16,000$.Therefore, the correct option is B.