Solved

Under the Capitalisation Method, the Formula for Calculating the Goodwill

Question 16

Multiple Choice

Under the capitalisation method, the formula for calculating the goodwill is


A) Super profits multiplied by the rate of return
B) Average profits multiplied by the rate of return
C) Super profits divided by the rate of return
D) Average profits divided by the rate of return

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q11: A firm's goodwill is not affected by<br>A)Location

Q12: The value of Intangible assets is -------------

Q13: Following are forms of Intangible assets.<br>A)Brand, Goodwill,

Q14: Intangibility refers to ------------------<br>A)Economic benefit<br>B)Absence of future

Q15: The amount of goodwill is paid by

Q17: A bundle of rights given by law

Q18: The following statement stands true when intangible

Q19: Goodwill is to be calculated at one

Q20: A firm earns ?1,00,000. The normal rate

Q21: Valuation of ------------- Assets is difficult.<br>A)Intangible<br>B)Wasting<br>C)Current<br>D)all