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