Valuation of goodwill (Question Bank)
Valuation of goodwill OBJECTIVE TYPE QUESTIONS The amount of goodwill is paid by the new partner: for the payment of capital for sharing the profit for purchase of assets None of these Goodwill is capitalized valued of ________. Super Profit Capital employed Normal Profit Gross Profit ________ is the excess of actual profit over normal profit. Super Profit Average Profit Normal profit Super Loss Capitalisation method for goodwill is used when: No. of years purchase is not given When total assets are given When business is sold Always when calculating super profits When the business is taken over by another business, the excess of purchase consideration over its net value asset is referred to as ____. Purchase Goodwill Generated Goodwill Average Goodwill Super Goodwill The formula for Capitalisation of Super Profit Method is Super Profit × × Num