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. During the retirement of a partner c. All of these d. During admission of a new partner in the organization 2 / 10 2) 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. None of the above b. Partially True c. False d. True 3 / 10 3) Is it true that goodwill calculated by one method is equivalent to goodwill calculated by other methods? a. Can’t say b. True c. False d. Partially true 4 / 10 4) Goodwill is classified into a. Self-generated goodwill b. Both self-generated & purchased c. Purchased goodwill d. None of these 5 / 10 5) Identify the correct statement a. Goodwill is an intangible asset b. Goodwill is a liability c. Goodwill is a current asset d. Goodwill is a fictitious asset 6 / 10 6) 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 7 / 10 7) Which goodwill is recorded in the book of accounts as per accounting standard 26? a. Self-generated b. None of these c. Both d. Purchased 8 / 10 8) Goodwill helps an organization in bringing what kind of profits? a. Less b. No profit at all c. Similar d. Excess 9 / 10 9) Excess of ____________profits over ___________ profit is called super profit? a. Super, normal b. Super, actual c. Actual, super d. Actual, normal 10 / 10 10) What is the formula for calculating goodwill under the super profit method? a. Super profit minus normal profit b. The number of years purchases multiplied by average profit c. Super profit divided by normal rate of return d. The number of years’ purchases multiplied by super profit 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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