Page 7 - GOODWILL QUESTIONS 1

Question: 27 of 36 QID: 173 Marks: 1

WHICH ACCOUNTING STANDARD DEALS WITH TREATENT OF GOODWILL?

A. AS 23 B. AS 26
C. AS 6 D. AS 3
NARULA ACADEMY

Question: 28 of 36 QID: 174 Marks: 1

GOODWILL CAN BE PURCHASED AND SELF-GENERATED

A. True B. False

Question: 29 of 36 QID: 175 Marks: 1

ONLY PURCHASED GOODWILL CAN APPEAR IN THE BALANCESHEET AS PER AS 26

A. True B. False

Question: 30 of 36 QID: 176 Marks: 1

WHAT IS TRUE ABOUT GOODWILL?

A. IT IS AN INTANGIBLE ASSET. B. IT CAN BE SOLD ALONG WITH BUSINESS.
C. ITS VALUE KEEPS ON CHANGING. D. ALL THE ABOVE

Question: 31 of 36 QID: 177 Marks: 1

UNDER WHICH METHOD OF VALUATION OF GOODWILL, NORMAL PROFIT IS REQUIRED TO BE CALCULATED?

A. SUPER PROFIT METHOD B. AVERAGE PROFIT METHOD
C. CAPITALIZATION METHOD D. UNDER SUPER PROFIT METHOD AND CAPITAISATION
METHOD

Question: 32 of 36 QID: 178 Marks: 1

INCOME FROM NON-TRADE INVESTMENT IS DEDUCTED FROM GIVEN PROFITS FOR VALUATION OF GOODWILL.

A. True B. False

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