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Question-1
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-2
How to calculate the average profit under average profit?
(A)
Average profit = Total of products / Total of weights
(B)
Average profit = Total profits/ No. of years
(C)
Average profit = Total of weights/ Total of production
(D)
None of these
Question-3
Formula of super profit method for normal profit is
(A)
Capital invested
x
Normal
rate of return /100
(B)
Capital invested X Normal rate of return
(C)
Capital invested +
Normal
rate of return
(D)
Capital invested -
Normal
rate of return
Question-4
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-5
To ascertain the exact value of goodwill is _______________.
(A)
Easy
(B)
Fixed
(C)
Difficult
(D)
Constant
Question-6
The average profit of the company is 75000 which includes abnormal income of Rs 5000 on an average base. The capital invested in the business is 7,50,000. Calculate actual average profit under super profit method?
(A)
70,000
(B)
7000
(C)
50,000
(D)
17,000
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
To find out the value of goodwill, the average profits is multiplied by number of ______________ purchase
(A)
Days
(B)
Years
(C)
Months
(D)
None of these
Question-9
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-10
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
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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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