methods of valuation of goodwill

which of the following statement is correct

• goodwill is fictitious assets

• goodwill was wasting assets

• goodwill is current assets

• goodwill is an intangible assets

Nature of goodwill is

• intangible asset

• fictitious asset

• long term liability

• current asset

Which of the following is/are method(s) of valuation of goodwill ?

• Average profit method

• super profit method

• capitalisation method

• All of the above

Which of the following factor(s) affect goodwill

• Nature of business

• Efficiency of management

• Location

• All of the above

Find out that goodwill which is accounted for as per Accounting Standard 26

• Purchased goodwill only

• Self generated goodwill only

• both(a) and (b)

• Goodwill brought in by a partner

The profits for the last 3 years were- 1st year-4,000 ,IInd year-6,000 and IIIrd year-2,000.Select correct option for goodwill on the basis of 3 years purchase of average profit.

• ₹ 12,500

• ₹ 12,000

• ₹ 13,000

• ₹ 16,000

Capital employed in the business is ₹ 2,00,000,Normal rate of return(NRR) on capital employed is 15 % .During the year firm earned a profit of ₹ 48,000.Find the correct option if goodwill is 3 years purchase of super profit.

• ₹ 54,000

• ₹ 60,000

• ₹ 50,000

• ₹ 48,000

A firms earn ₹ 1,20,000 as its annual profits.The normal rate of profit being 10 % .Assets of the firm are ₹ 14,40,000 and liabilities are ₹ 4,40,000.Tick the correct option for goodwill by capitalisation method.

• ₹ 4,00,000

• ₹ 2,80,000

• ₹ 2,00,000

• ₹ 3,60,000

Average profit of firm is ₹ 3,00,000.total tangible assets in the firm are ₹ 28,00,000 and outside liabilities ₹ 8,00,000.The NRR is 10% of capital employed.calculate goodwill by capitalisation of super profit method.

• ₹ 14,00,000

• ₹ 16,00,000

• ₹ 18,00,000

• ₹ 10,00,000

Super profit =

• Average profit-Normal profit

• Normal profit-actual profit

• Average Profit-capital employed

• None of the above