Goodwill MCQs [Set 1] 01/04/2023 One Mark Solution Accountancy 0 20 Created on April 01, 2023 By One Mark Solution Goodwill MCQs [Set 1] 1 / 10 1) Goodwill needs to be valued when? a. After the death of a partner b. All of these c. During the retirement of a partner d. During admission of a new partner in the organization 2 / 10 2) Excess of ____________profits over ___________ profit is called super profit? a. Actual, super b. Super, actual c. Super, normal d. Actual, normal 3 / 10 3) Identify the correct statement a. Goodwill is a fictitious asset b. Goodwill is a liability c. Goodwill is an intangible asset d. Goodwill is a current asset 4 / 10 4) Goodwill helps an organization in bringing what kind of profits? a. Excess b. Similar c. No profit at all d. Less 5 / 10 5) Super profit being zero indicates that the actual average profit is less than or equal to the normal profit. State if it is true or false. a. Partially True b. False c. True d. None of the above 6 / 10 6) Is it true that goodwill calculated by one method is equivalent to goodwill calculated by other methods? a. True b. False c. Partially true d. Can’t say 7 / 10 7) Goodwill is classified into a. Self-generated goodwill b. None of these c. Purchased goodwill d. Both self-generated & purchased 8 / 10 8) Which goodwill is recorded in the book of accounts as per accounting standard 26? a. Self-generated b. None of these c. Purchased d. Both 9 / 10 9) What is the formula for calculating goodwill under the super profit method? a. Super profit divided by normal rate of return b. Super profit minus normal profit c. The number of years purchases multiplied by average profit d. The number of years’ purchases multiplied by super profit 10 / 10 10) The reward an organization receives by selling its assets at a high rate of price beyond its fair value is a. Super profit b. Goodwill c. Surplus d. Reserve Name Your score is The average score is 64% LinkedIn Facebook Twitter VKontakte 0% Restart quiz Send feedback Spread the love
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