Page 8 - GOODWILL QUESTIONS

Question: 33 of 36 QID: 179 Marks: 1

PURCHASE OF MACHINERY DEBITED TO PRFIT AND LOSS A/C WHILE COMPUTING PROFITS,HOW WILL YOU CORRECT THE PROFIT
FOR VALUATION OF GOODWILL?

A. BY INCREASING GIVEN PRFIT B. BY DECREASING GIVEN PROFIT
C. BY MAKING NO ADJUSTMENT D. BY INCREASING THE PROFIT BY COST OF MACHINERY
AND DECREASING IT BY THE AMOUNT OF DEPRECIATION.

Question: 34 of 36 QID: 180 Marks: 1

MATCH THE FOLLOWING

[ ] 1. GOODWILL A. A FACTOR AFFECTING VALUE OF GOODWILL
[ ] 2. NORMAL PROFIT B. MEANING OF GOODWILL

[ ] 3. LOCATION OF BUSINESS C. NET ASSETS*RATE OF CAPITISATION/100
[ ] 4. IT IS NOTHING MORE THAN A D. AN INTANGIBLE ASSET
PROBABILITY THAT OLD CUSTOMERS
WILL RESORT TO OLD PLACE

Question: 35 of 36 QID: 181 Marks: 1

WHAT IS SAME BETWEEN GOODWILL AND COPYRIGHT?

A. BOTH ARE TANGIBLE FIXED ASSETS. B. BOTH ARE FICTITIOUS ASSETS

C. BOTH ARE INTANGIBLE ASSETS. D. BOTH ARE NON-SALEABLE

Question: 36 of 36 QID: 182 Marks: 1

NEW PARTHER HAS TO BRING HIS SHARE OF GOODWILL TO COMPENSATE OLD PARTNERS WHO SACRIFICE FOR HIM.

A. Yes B. No

--- END OF QUESTION PAPER ---

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