Goodwill MCQs [Set 1]

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.

2) What is the formula for calculating goodwill under the super profit method?

3) Is it true that goodwill calculated by one method is equivalent to goodwill calculated by other methods?

4) Identify the correct statement

5) Which goodwill is recorded in the book of accounts as per accounting standard 26?

6) Goodwill is classified into

7) Excess of ____________profits over ___________ profit is called super profit?

8) Goodwill needs to be valued when?

9) Goodwill helps an organization in bringing what kind of profits?

10) The reward an organization receives by selling its assets at a high rate of price beyond its fair value is