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

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 : Weighted average profit method of calculating goodwill is used when

Option 1: Profits are unequal

Option 2: Profits are fluctuating

Option 3: Profit shows a trend

Option 4: None of the above

Question : The remuneration of the entrepreneur in production is

Option 1: pure profit 

Option 2: gross profit 

Option 3: net profit 

Option 4: super-normal profit 

Question : Average of the profit of past agreed years is known as __________.

Option 1: super profit 

Option 2: normal profit 

Option 3: average profit 

Option 4: capital employed