MCQs on "Goodwill": Find the multiple choice questions on "Goodwill", frequently asked for all competitive examinations.
Here are a few MCQs on Goodwill for your better understanding of the topic.
Q:1.
Which of the following is definition of goodwill?
- A. Current asset.
- B. Fictitious asset.
- C. Liquid asset.
- D. Intangible asset.
Q:2.
When is the method of weighted average for calculating the goodwill is used?
- A. When profits are fluctuating.
- B. When the profit is not the same.
- C. When profits show decreasing or increasing trend.
- D. None of the above
Q:3.
What is the formula for calculating the goodwill under the capitalization method?
- A. Average profits are divided by the rate of return.
- B. Average profits multiplied by the rate of return.
- C. Super profits multiplied by the rate of return.
- D. Super profits are divided by the rate of return.
Q:4.
If a change in partner’s association initiates a formation of a new agreement it is known as
- A. The realization of partnership.
- B. Revaluation of partnership.
- C. Reconstitution of partnership.
- D. None of the above.
Q:5.
The goodwill of an organization won’t be affected by?
- A. Surplus
- B. Location of the organization.
- C. Super profit.
- D. None of the above.
Q:6.
What does break even indicate?
- A. Costs are more than revenue.
- B. Revenues are more than cost.
- C. Revenues and costs are equal.
- D. None of the above.
Q:7.
The reward an organization receives by selling its assets at a high rate of price beyond its fair value is
- A. Reserve.
- B. Surplus.
- C. Goodwill.
- D. Super profit.
Q:8.
What is the formula for calculating goodwill based on Annuity?
- A. Super profit multiplied by Annuity value of Re. 1
- B. The number of years’ purchases multiplied by average profit.
- C. Several years’ purchases multiplied by super profit.
- D. Average profit multiplied by annuity value of Re. 1
Q:9.
Which of the following types of goodwill are considered to be the best?
- A. Cow goodwill.
- B. Rat goodwill.
- C. Dog goodwill.
- D. Cat goodwill.
Q:10.
Identify the correct statement
- A. Goodwill is a current asset.
- B. Goodwill is a fictitious asset.
- C. Goodwill is a liability.
- D. Goodwill is an intangible asset.
