Goodwill MCQs [Set 1] 01/04/2023 One Mark Solution Accountancy 0 21 Created on April 01, 2023 By One Mark Solution Goodwill MCQs [Set 1] 1 / 10 1) 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. False b. None of the above c. True d. Partially True 2 / 10 2) Identify the correct statement a. Goodwill is an intangible asset b. Goodwill is a current asset c. Goodwill is a liability d. Goodwill is a fictitious asset 3 / 10 3) 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. Reserve d. Surplus 4 / 10 4) What is the formula for calculating goodwill under the super profit method? a. Super profit minus normal profit b. Super profit divided by normal rate of return c. The number of years’ purchases multiplied by super profit d. The number of years purchases multiplied by average profit 5 / 10 5) Goodwill helps an organization in bringing what kind of profits? a. No profit at all b. Similar c. Less d. Excess 6 / 10 6) Goodwill needs to be valued when? a. During the retirement of a partner b. All of these c. During admission of a new partner in the organization d. After the death of a partner 7 / 10 7) Which goodwill is recorded in the book of accounts as per accounting standard 26? a. Both b. Purchased c. None of these d. Self-generated 8 / 10 8) 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 9 / 10 9) Excess of ____________profits over ___________ profit is called super profit? a. Super, actual b. Actual, super c. Actual, normal d. Super, normal 10 / 10 10) Goodwill is classified into a. None of these b. Self-generated goodwill c. Purchased goodwill d. Both self-generated & purchased Name Your score is The average score is 61% LinkedIn Facebook Twitter VKontakte 0% Restart quiz Send feedback Spread the love
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