Class 12th Accounts
Faraz Mateen Class 12th Accounts
Goodwill
1. 1. Goodwill is defined as
A) Intangible asset
B) Fictitious asset
C) Current asset
D) Liquid asset
A
B
C
D
2. Break-even indicates
A) Revenues are more than cost
B) Revenues and cost are equal
C) Costs are more than revenue
D) None of the Above
A
B
C
D
3The excess amount which the firm can get on selling its assets over and above the saleable value of its assets is called
A) Surplus
B) Super Profit
C) Reserve
D) Goodwill
À
B
C
D
4 A The excess amount which the firm can get on selling its assets over and above the saleable value of its assets is called
A) Surplus
B) Super Profit
C) Reserve
D) Goodwill
A
B
C
D
5 Weighted average method of calculating goodwill is used when
A) Profits are not equal
B) Profits show an increasing or decreasing trend
C) Profits are Fluctuating
D) None of the Above
A
B
C
D
6 Under the capitalisation method, the formula for calculating the goodwill is
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
A
B
C
D
7 The total capital employed in the company is ₹8,00,000 a reasonable rate of return is 15% and the profit of the year is 12,00,000. The value of goodwill of the company as per the capitalisation method will be
A) ₹ 82,00,000
B) ₹ 12,00,000
C) ₹ 72,00,000
D) ₹ 42,00,000
A
B
C
D
8 The total capital employed in the company is ₹8,00,000 a reasonable rate of return is 15% and the profit of the year is 12,00,000. The value of goodwill of the company as per the capitalisation method will be
A) ₹ 82,00,000
B) ₹ 12,00,000
C) ₹ 72,00,000
D) ₹ 42,00,000
A
B
C
D
9 weighted average method of Calculating goodwill be used
A when profit are fluctuating
B when profit show a trend
Ç when profit are not equal
D None of above
A
B
C
D
10.which of the following is not true in relation to goodwill
A It is an intangible assets
B It is a fictitious assets
C It has a realisable value
D All of these
A
B
C
D
