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

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

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 monetary value of such advantage is termed as ____________

(a)

Goodwill

(b)

Bank overdraft

(c)

Capital

(d)

Cash

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

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

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

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%

__________ 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

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