Top 50+ Solved Valuation of Goodwill MCQ Questions Answer
Q. Goodwill is defined asSol:
a. Intangible asset
b. Fictitious asset
c. Current asset
d. Liquid asset
Q. Break-even indicatesSol:
a. Revenues are more than cost
b. Revenues and cost are equal
c. Costs are more than revenue
d. None of the Above
Q. The excess amount which the firm can get on selling its assets over and above the saleablevalue of its assets is calledSol:
a. Surplus
b. Super Profit
c. Reserve
d. Goodwill
Q. A firm’s goodwill is not affected bySol:
a. Location of the firm
b. The reputation of the Firm
c. Better Customer Service
d. None of the Above
Q. Weighted average method of calculating goodwill is used whenSol:
a. Profits are not equal
b. Profits show an increasing or decreasing trend
c. Profits are Fluctuating
d. None of the Above
Q. Under the capitalisation method, the formula for calculating the goodwill isSol:
a. Super profits multiplied by the rate of return
b. Average profits multiplied by the rate of return
c. Super profits divided by the rate of return
d. Average profits divided by the rate of return
Q. When there is a change in the current partners’ association that results in ending the existingagreement and initiate a formation of a new agreement is known asSol:
a. Revaluation of Partnership
b. Reconstitution of Partnership
c. Realisation of Partnership
d. None of the Above
Q. Goodwill is nothing more than probability that the old customer will resort to the oldplace. This definition of goodwill was given by:
a. Spicer and Pegler
b. ICAI
c. Lord Elton
d. AICPA
Q. When there is no Goodwill Account in the books and goodwill israised,…………….account will be debitedSol:
a. Partner’s Capital
b. Goodwill
c. Cash
d. Reserve
Q. The amount of goodwill is paid by new partner :Sol:
a. for the payment of capital
b. for sharing the profit
c. for purchase of assets
d. None of these
Q. At the time of admission of a new partners general reserve appearning in the old BalanceSheet is transferred to:
a. All Partner’s Capital Accounts
b. New Partner’s Capital Account
c. Old Partners’. Capital Accounts
d. None of these
Q. An asset which does not have a physical form but has the potential to have a monetaryvalue is known as an -------------Sol:
a. Fictitious Asset
b. Physical Asset
c. Intangible Asset
d. all
Q. Following are forms of Intangible assets.Sol:
a. Brand, Goodwill, Furniture, Design
b. Goodwill, Patent Rights, Machinery
c. Brand, Trademark, Copyrights, Know how
d. all
Q. The value of Intangible assets is ------------- over a period of time.Sol:
a. Amortized
b. Added
c. Depreciated
d. all