Goodwill MCQs [Set 1] 01/04/2023 One Mark Solution Accountancy 0 19 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. During the retirement of a partner c. During admission of a new partner in the organization d. All of these 2 / 10 2) Goodwill is classified into a. Both self-generated & purchased b. None of these c. Purchased goodwill d. Self-generated goodwill 3 / 10 3) The reward an organization receives by selling its assets at a high rate of price beyond its fair value is a. Reserve b. Surplus c. Super profit d. Goodwill 4 / 10 4) What is the formula for calculating goodwill under the super profit method? a. Super profit divided by normal rate of return b. The number of years purchases multiplied by average profit c. The number of years’ purchases multiplied by super profit d. Super profit minus normal profit 5 / 10 5) Is it true that goodwill calculated by one method is equivalent to goodwill calculated by other methods? a. False b. Partially true c. True d. Can’t say 6 / 10 6) Identify the correct statement a. Goodwill is a liability b. Goodwill is a current asset c. Goodwill is a fictitious asset d. Goodwill is an intangible asset 7 / 10 7) 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. None of the above d. True 8 / 10 8) Goodwill helps an organization in bringing what kind of profits? a. Similar b. Excess c. No profit at all d. Less 9 / 10 9) Which goodwill is recorded in the book of accounts as per accounting standard 26? a. None of these b. Both c. Purchased d. Self-generated 10 / 10 10) Excess of ____________profits over ___________ profit is called super profit? a. Super, normal b. Actual, normal c. Super, actual d. Actual, super Name Your score is The average score is 63% LinkedIn Facebook Twitter VKontakte 0% Restart quiz Send feedback Spread the love
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