Top 50+ Solved Valuation of Goodwill MCQ Questions Answer
Q. The following statement stands true when intangible assets are compared to the currentassetsSol:
a. Useful life is short
b. Useful life is moderate
c. Useful life is long
d. all
Q. This is the feature of Intangible assetsSol:
a. They are valuable to internal and external entities.
b. They are always acquired.
c. They may be internally created or purchased
d. all
Q. Intangibility refers to ------------------Sol:
a. Economic benefit
b. Absence of future value
c. Absence of physical form and creation.
d. all
Q. An exclusive legal right in the form of Logo, Brand, Symbol, Name of Design is known as ---- Sol:
a. Trademark
b. Patent Right
c. Copy Right
d. all
Q. A unique name of symbol or design given to a product or service for easy identificationand distinguishing it from the competitor is known as---------
a. Patent Right
b. Trade Secret
c. Brand
d. all
Q. A bundle of rights given by law to the creators of literary, artistic, dramatic, musical workis known asSol:
a. Patent Rights
b. Trade Rights
c. Copyrights
d. all
Q. An exclusive right given to an entity of individual or business firm to manufacture or sellan invention is known asSol:
a. Copyright
b. Trade right
c. Patent right
d. all
Q. From the profits of previous three years, Rs 150000, Rs 200000, and Rs250000/- the valueof goodwill at five years of purchase is -----------Sol:
a. Rs12,50,000/-
b. Rs 7,50,000/-
c. Rs10,00,000/-
d. all
Q. From the profits of previous three years, Rs 150000, Rs 300000, and Rs250000/- and theloss in a year ( Rs. 100000/-) the value of goodwill at three years of purchase is ---------
a. Rs 8,00,000
b. Rs 6,00,000
c. Rs 4,50,000
d. all
Q. If Average Profit of a certain firm for last five years is Rs5,00,000 , Normal profit is Rs3,50,000/-. What would be the Value of Goodwill at 3years purchase of super profit
a. Rs 8,00,000
b. Rs 6,00,000
c. Rs 4,50,000
d. all
Q. Goodwill is defined asSol:
a. Intangible asset
b. Fictitious asset
c. Current asset
d. Current asset
Q. Weighted average method of calculating goodwill is used whenSol:
a. Profits are not equal
b. Profits show a trend
c. Profits are fluctuating
d. None of the above
Q. If the amount of super profit is negative ,what des it indicateSol:
a. There is no goodwill
b. There is average goodwill
c. Both
d. None
Q. Which goodwill is recorded in the books of AccountsSol:
a. Purchase Goodwill
b. Self Generated
c. Both
d. None
Q. When does need valuation of GoodwillSol:
a. On retirement or Death of a partner
b. Admission of Partner
c. None of the Above
d. Both