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Question-1
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-2
How many methods of capitalization of profits?
(A)
3
(B)
1
(C)
2
(D)
4
Question-3
(Capitalization of Average profit method) Average profit of a firm is Rs 70,000 and the rate of Capitalization is 10% sundry assets and sundry liabilities of the firm are Rs 70,000 and Rs 1, 50,000 respectively. Find out value of Average profit?
(A)
Rs 70,000
(B)
Rs 55,000
(C)
Rs.1,50,000
(D)
Rs 7,00,000
Question-4
In which type of method goodwill is calculated by capitalizing the profits ?
(A)
Average profit method
(B)
Weight average profit method
(C)
Super profit method
(D)
Capitalization method
Question-5
Average profit of a firm is Rs70,000 and the rate of capitalization is 10%. Sundry assets and Sundry liabilities of the firm are Rs7,00,000 and Rs50,000 respectively Find out the capital employed
(A)
5,50,000
(B)
5,00,000
(C)
1,50,000
(D)
1,55,000
Question-6
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-7
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-8
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-9
Identify the purchased goodwill from the following
(A)
Not shown in the balance sheet as on asset
(B)
Subjectivity in its valuation
(C)
Generated internally over period of time
(D)
Show in balance sheet as an asset
Question-10
Goodwill arises only when the firm earns ___________________
(A)
Average profit
(B)
Weighted Average profit
(C)
Super profit
(D)
Capitalization of 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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