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

Super profit is the difference between

(a)

Capital employed and average profit

(b)

Assets and liabilities

(c)

Average profit and normal profit

(d)

Current year’s profit and average profit

When the average profit is Rs. 25,000 and the normal profit is Rs. 15,000, super profit is __________

(a)

Rs. 25,000

(b)

Rs. 5,000

(c)

Rs. 10,000

(d)

Rs. 15,000

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

The total capitalised value of a business is Rs. 1,00,000; assets are Rs. 1,50,000 and liabilities are Rs. 80,000. The value of goodwill as per the capitalisation method will be

(a)

Rs. 40,000

(b)

Rs. 70,000

(c)

Rs. 1,00,000

(d)

Rs. 30,000

The monetary value of such advantage is termed as ____________

(a)

Goodwill

(b)

Bank overdraft

(c)

Capital

(d)

Cash

Goodwill helps in earning more profit and attracts more _________

(a)

customers

(b)

producers

(c)

competitors

(d)

suppliers

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

Goodwill acquired by making payment in cash or kind is called __________

(a)

Purchased goodwill

(b)

Self-generated goodwill

(c)

Average goodwill

(d)

'a' and 'b'

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