Question : Capital invested in the firms business is termed as

Option 1: Super profit

Option 2: Average profit 

Option 3: Normal profit 

Option 4: Capital employed

Question :  Under the super profit method, goodwill is calculated by

Option 1: Number of years purchase X Average profit

Option 2: Number of years purchase X Super profit

Option 3: super profit/normal rate of return

Option 4: super profit - normal profit 

Question : Under average profit methods goodwill is calculated as

Option 1: Super profit x No. of years purchases

Option 2: Average profit X No. of years purchases

Option 3: Capital employed X  No. of years purchases

Option 4: Super profit/expected rate of return

Question : When a similar type of business earns profit at a standard percentage of the Capital employed, it is called __________ .

Option 1: Normal return 

Option 2: Interest on loan 

Option 3: Interest on drawing 

Option 4: Super profit 

Question :

The Formula for Capitalisation of Super Profit Method is:

Option 1: Super Profit X No. of years Purchase

Option 2: Super Profit X 100/Normal rate of return

Option 3: (Super Profit - Normal Profit) 100 / Normal Rate of Return

Option 4: None of the above