| 1 |
Goodwiil is an |
- A. Tangible asset
- B. Intangible asset
- C. Wasting asset
- D. Fictitious asset
|
| 2 |
The value of goodwill is calculated by multiplying the average profit of a given number of past years by an agreed number under |
- A. Average profits method
- B. Super profits method
- C. Capitalization method
- D. Revaluation method
|
| 3 |
The share of profit to a new partner in the future profits without any express agreement as to who will contribute to new partner's share of profit is implied that old partners contribute |
- A. Equally
- B. In proportion of their capital
- C. In their profit sharing ratio
- D. None of these
|
| 4 |
The benefit and advantage of the good name or reputation of a business. |
- A. Liability
- B. Goodwill
- C. Amortization
- D. Depreciation
|
| 5 |
Old profit sharing ratio minus new profit sharing ratio is equal to |
- A. Sacrificing ratio
- B. Gaining ratio
- C. Distributing ratio
- D. None of these
|
| 6 |
What will be the value of goodwill on two years purchase of the average profit of the last three years? The profit earned during the last three years are Rs. 10000, Rs.12000 and Rs.14000 |
- A. Rs.24000
- B. Rs.20000
- C. Rs.12000
- D. Rs.36000
|
| 7 |
Goodwill is valued when |
- A. Profit is earned
- B. Loss is suffered
- C. One year is completed
- D. New partner is admitted
|
| 8 |
X, Y and Z are partners in a firm. If B is to be admitted as a new partner |
- A. Old partnership has to be dissolved
- B. Old firm has to be dissolved
- C. Both old firm and partnership have to be dissolved
- D. Neither firm nor parnership needs to be dissolved
|
| 9 |
On the admission of a new partner the decrease in the value of assets is debited to |
- A. Profit and loss adjustment account
- B. Assets account
- C. Old partners capital account
- D. New partner capital account
|
| 10 |
A new partner may be admitted to a partnership |
- A. With the consent of all the old partners
- B. With the consent of any one of the partners
- C. With the consent of two third of the old partners
- D. Without consent of old partners
|
