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Question-1
In weighted average profit, the higher weight-age is assigned __________ year
(A)
Starting
(B)
After six month
(C)
Recent
(D)
End of the year
Question-2
Which one of the following are not the miscellaneous factors of goodwill?
(A)
Political conditions
(B)
Research and department
(C)
Brand image
(D)
None of these
Question-3
The book of a business showed that the capital employed on 31st December 2007 was Rs 5,00,000 and the profits for the last five year were as follows. 2003 – Rs 40,000, 2004,- Rs 50,000, 2005- Rs 60,000 2006-70,000 and 2007-Rs 80,000. You are required to find out average profit under super profit method?
(A)
Rs. 3,00,000
(B)
Rs 60,000
(C)
Rs. 50,000
(D)
Rs. 10,000
Question-4
To ascertain the exact value of goodwill is _______________.
(A)
Easy
(B)
Fixed
(C)
Difficult
(D)
Constant
Question-5
The books of a business showed that the capital employed on 31st December 2007 was 5, 00,000 and the profits for the last 5 years were as follows 2003-Rs 40,000 , 2004-Rs 50,000, 2005-Rs 60,000, 2006-Rs70,000 and 2007- Rs 80,000. Purchase of super profit of the business given that normal rate of return is 10%. Find out normal profit
(A)
Rs. 50,000
(B)
Rs 3, 00,000
(C)
Rs 10,000
(D)
Rs 60,000
Question-6
There is a capital of Rs 1,50,000 in a firm average profit is Rs 14,000. Normal return of such business is expected at 8% . find out the Normal profit on basis of Capitalization value of super profit?
(A)
Rs, 12,000
(B)
Rs, 25,000
(C)
Rs, 14,000
(D)
Rs, 8000
Question-7
Identify the non-purchased goodwill from the following.
(A)
Arises on purchase of business
(B)
Not shown in the balance sheet as an asset
(C)
Shown in balance sheet as on asset
(D)
Arises on purchase of brand
Question-8
How many methods of capitalization of profits?
(A)
3
(B)
1
(C)
2
(D)
4
Question-9
There is a capital of Rs 1,50,000 in a firm, average profit is 14,000. Normal return of such business is expected 8%. Calculate the value of goodwill as per capitalization of average profits method?
(A)
Rs1,75,000
(B)
Rs25,000
(C)
Rs1,50,000
(D)
Rs75,000
Question-10
It actual profit of a firm are more than the normal profits, the difference is known as ___________________
(A)
Super profit
(B)
Weighted profit
(C)
Capitalization
(D)
Average profit
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Plus 2 Commerce
ICSE/ISC
Practice in Related Chapters
Partnership Accounts : Distribution of Profits
Goodwill - Concept and Mode its Valuation
Partnership Accounts : Admission of Partner
Capital Adjustment of Change of Profit Sharing Ratio
Admission of a Partner
Final Accounts of Companies
Joint Stock Company Accounts: Issue of Debentures
Cost Accounting An Introduction
Joint Venture Account
Sectional Balancing and Self Balancing System
Ratio Analysis
Cost Accounting Inventory Valuation
Cash Flow Statement
Cost Accounting Cost Sheet
Cash Flow Statement
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