#### 12th Standard Accounts Goodwill In Partnership Accounts English Medium Free Online Test One Mark Questions 2020 - 2021

12th Standard

Reg.No. :
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Accountancy

Time : 00:10:00 Hrs
Total Marks : 10

10 x 1 = 10
1. Which of the following statements is true?

(a)

Goodwill is an intangible asset

(b)

Goodwill is a current asset

(c)

Goodwill is a fictitious asset

(d)

Goodwill cannot be acquired

2. The average rate of return of similar concerns is considered as

(a)

Average profit

(b)

Normal rate of return

(c)

Expected rate of return

(d)

None of these

3. Book profit of 2017 is Rs.35,000; non-recurring income included in the profit is Rs.1,000 and abnormal loss charged in the year 2017 was Rs.2,000, then the adjusted profit is

(a)

Rs.36,000

(b)

Rs.35,000

(c)

Rs.38,000

(d)

Rs.34,000

4. The monetary value of such advantage is termed as

(a)

Goodwill

(b)

Bank overdraft

(c)

Capital

(d)

Cash

5. The profit earning capacity of the firm determines the value of its

(a)

balance sheet

(b)

goodwill

(c)

profit and loss account

(d)

all of these

6. Which of the following method, goodwill is calculated by multiplying the weighted average profit?

(a)

Super profit method

(b)

Annuity

(c)

Weighted average profit method

(d)

All of these

7. Normal profit is

(a)

average profit earned

(b)

profit earned by similar companies in the same industry

(c)

both 'a' and 'b'

(d)

none of the above

8. Rate of interest is 11% and the rate of risk is 9% The normal rate of return is

(a)

11%

(b)

9%

(c)

20%

(d)

2%

9. __________ method, goodwill is calculated as certain years of purchase of average profits of the past few years.

(a)

Simple average method

(b)

Average profit method

(c)

Super profit method

(d)

Annuity method

10. While calculating capital employed _________.

(a)

Tangible trading assets should be considered

(b)

Intangible assets should be considered

(c)

Fictitious assets should be considered

(d)

None of the above