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