A firm earns ?1,00,000. The normal rate of return is 10%. The assets of the companyamounted to ?11,00,000 and liabilities to ?1,00,000. Value of goodwill by the capitalization of average actual profit will be
A) 2,00,000
B) 10000
C) 5000
D) 100000
Correct Answer:
Verified
Q2: From the profits of previous three years,
Q3: If Average Profit of a certain firm
Q4: Goodwill is defined as
A)Intangible asset
B)Fictitious asset
C)Current asset
D)Current
Q5: Weighted average method of calculating goodwill is
Q6: The total capital employed in the company
Q8: If the amount of super profit is
Q9: Which goodwill is recorded in the books
Q10: When does need valuation of Goodwill
A)On retirement
Q11: Which methods of valuation of Goodwill
A)Super Profit
B)Capitalization
C)Average
Q12: Which factor affecting th value of Goodwill
A)Quality
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