Goodwill MCQs [Set 1] 01/04/2023 One Mark Solution Accountancy 0 16 Created on April 01, 2023 By One Mark Solution Goodwill MCQs [Set 1] 1 / 10 1) Goodwill is classified into a. None of these b. Purchased goodwill c. Both self-generated & purchased d. Self-generated goodwill 2 / 10 2) Which goodwill is recorded in the book of accounts as per accounting standard 26? a. None of these b. Self-generated c. Both d. Purchased 3 / 10 3) The reward an organization receives by selling its assets at a high rate of price beyond its fair value is a. Goodwill b. Reserve c. Super profit d. Surplus 4 / 10 4) Excess of ____________profits over ___________ profit is called super profit? a. Super, normal b. Actual, normal c. Super, actual d. Actual, super 5 / 10 5) Is it true that goodwill calculated by one method is equivalent to goodwill calculated by other methods? a. False b. True c. Can’t say d. Partially true 6 / 10 6) Goodwill helps an organization in bringing what kind of profits? a. No profit at all b. Similar c. Excess d. Less 7 / 10 7) Identify the correct statement a. Goodwill is a liability b. Goodwill is a fictitious asset c. Goodwill is a current asset d. Goodwill is an intangible asset 8 / 10 8) 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. True b. None of the above c. False d. Partially True 9 / 10 9) What is the formula for calculating goodwill under the super profit method? a. The number of years purchases multiplied by average profit b. Super profit minus normal profit c. The number of years’ purchases multiplied by super profit d. Super profit divided by normal rate of return 10 / 10 10) Goodwill needs to be valued when? a. After the death of a partner b. During admission of a new partner in the organization c. During the retirement of a partner d. All of these Name Your score is The average score is 60% LinkedIn Facebook Twitter VKontakte 0% Restart quiz Send feedback Spread the love
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