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Question-1
Identify the non-purchased goodwill from the following.
(A)
Generated internally over period of time
(B)
Arises on purchase of business
(C)
Arises on purchase of brand
(D)
Show in balance sheet as an asset
Question-2
Past profit of a number of years are taken into consideration .What type of method is it?
(A)
Average profit
(B)
Weighted average profit
(C)
Super profit
(D)
Capitalization
Question-3
The average profit of a firm is Rs 55,000 which includes abnormal income of Rs 5000 on an average base. The capital invested in the business is Rs 5,00,000 and normal rate of return is 8% calculate normal profit under super profit method?
(A)
Rs 50,000
(B)
Rs 40,000
(C)
Rs 30,000
(D)
Rs. 20,000
Question-4
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-5
Identify the features of purchased goodwill from the following?
(A)
Arises on purchase of business
(B)
Generated internally over period of time
(C)
Subjectivity in this valuation
(D)
Note shown in the balance sheet as an asset
Question-6
There is 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 average profit under Capitalization of super profit method?
(A)
14,000
(B)
40,000
(C)
25,000
(D)
7000
Question-7
A well managed business generally enjoys the advantage of
(A)
High productivity
(B)
Lower productivity
(C)
Lower cost
(D)
Lower value of goodwill
Question-8
Average profit is calculated on the basis of past profit. What type of method is it?
(A)
Average profit
(B)
Weighted average
(C)
Super profit
(D)
Capitalization
Question-9
Goodwill arises only when the firm earns ___________________
(A)
Average profit
(B)
Weighted Average profit
(C)
Super profit
(D)
Capitalization of profit
Question-10
Average profit of a firm is Rs.70,000 and the rate of capitalization is10% sundry assets and sundry liabilities of the firm are Rs.7,00,000 and Rs.1,50,000 respectively. Calculate normal profit under capitalization of super profit method?
(A)
Rs.12,000
(B)
Rs.55,000
(C)
Rs.18,000
(D)
Rs.70,000
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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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