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Question-1
There is a capital of RS 1, 50,000 in a firm average profit is RS 14,000 Normal rate of return of such business is expected at 8% find out the Capitalized value of average profit?
(A)
Rs 14,000
(B)
Rs 1,75,000
(C)
Rs 12,000
(D)
Rs 25,000
Question-2
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-3
Goodwill is an intangible asset as goodwill does not suffer wear and tear so __________________ is provided
(A)
Depreciation
(B)
No Depreciation
(C)
Capital value
(D)
None of these
Question-4
Goodwill cannot be sold ____________
(A)
Whole
(B)
Separately
(C)
Constant
(D)
None of these
Question-5
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
Question-6
Identify the features of purchased goodwill from the following.
(A)
Generated internally over period of time
(B)
Subjectivity in its valuation
(C)
Arises on purchase of brand
(D)
Not show in the balanced sheet as on asset
Question-7
In which type of method, tries to asses the capital needed for earning the super profit. This capital is known as goodwill
(A)
Capitalization of Annual profit method
(B)
Weighted Average profit method
(C)
Capitalization of super profit method
(D)
None of these
Question-8
To ascertain the exact value of goodwill is _______________.
(A)
Easy
(B)
Fixed
(C)
Difficult
(D)
Constant
Question-9
The average profit of a firm is Rs 55,000 which includes abnormal income of Rs 5000 on an average basis. The capital invested in the business is Rs 5, 00,000. Calculate actual average profit under super profit method
(A)
5, 00,000
(B)
5000
(C)
50,000
(D)
15,000
Question-10
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
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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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