Multiple Choice
The profits of the last three years is55000,50000,45000. Value of goodwill of 2 yearspurchase of average profit is
A) 100000
B) 42000
C) 126000
D) None
Correct Answer:
Verified
Correct Answer:
Verified
Q13: Mining Royalty is based on<br>A)Production<br>B)Sales<br>C)Purchase<br>D)Both A and
Q14: The excess of Average profit over normal
Q15: Goodwill will have no effect on business
Q16: Goodwill is defined as<br>A)Intangible asset<br>B)Fictitious asset<br>C)Current asset<br>D)Current
Q17: If Average Profit of a certain firm
Q19: Which methods of valuation of Goodwill<br>A)Super Profit<br>B)Capitalization<br>C)Average
Q20: If the amount of super profit is
Q21: Which goodwill is recorded in the books
Q22: Copyright royalty is based on<br>A)Sales<br>B)Production<br>C)Purchase<br>D)Both A and
Q23: From the profits of previous three years,