Corporate Accounting B.Com CA II Year

Goodwill is defined as

• Intangible asset

• Fictitious asset

• Current asset

• Liquid asset

A firm’s goodwill is not affected by

• Location of the firm

• The reputation of the Firm

• Better Customer Service

• None of the Above

The basis for the valuation of goodwill is

• Profit

• share

• Debentures

• None of the above

Goodwill is paid for obtaining_______

• Future benefit

• Present benefit

• Past benefit

• None of the above

Super profit is___________

• excess of average profit over normal profit

• Extra profit earned

• average profit earned by similar companies

• none of the above

Normal profit is_________

• Average Profit earned

• profit earned by similar companies in the same industry

• (a) and (b) both

• None of the above

Normal rate of return depends on_______

• Rate of return

• Rate of risk

• both (a) and (b)

• None of the above

Any non-trading income included in the profit should be___

• Subtracted

• Added

• ignored

• None of the above

Super Profitis`9,167 and the Normal Rate of Return is 10% .Goodwill as per capitalisation of Super Profit method is equal to

• 91670

• 90600

• 67910

• 95000

The annuity method of Goodwill is based on....... element

• Time

• Personal

• Law

• Management