Question : Weighted average method of calculating goodwill be used:

Option 1: When profits are fluctuating

Option 2: When profits show a trend

Option 3: When Profits are not equal

Option 4: None of the above

Question : Following are the methods of calculating goodwill except:

Option 1: Super profit method

Option 2: Average profit method

Option 3:  Weighted Average Method

Option 4: Capital profit method

Question : What are super profits?

Option 1: Actual profit - Normal Profit

Option 2: Normal profit - Actual Profit

Option 3: Actual profit + Normal Profit

Option 4: None of the above

Question : Under which method of valuation of goodwill, normal rate of return is not considered?

Option 1: Average profit method

Option 2: Capitalisation method

Option 3: Super profit method

Option 4: All of these

Question : Under the Capitalisation Method of valuation of Goodwill, the formula for calculating goodwill is:

Option 1: Super profits multiplied by the rate of return

Option 2: Average profits multiplied by the rate of return

Option 3: Super profits are divided by the rate of return

Option 4: Average profits divided by the rate of return