Accountancy worksheet

1. HERMANN GMEINER SCHOOL, FARIDABAD
SUBJECT – ACCOUNTANCY
CLASS- XII
CHAPTER- GOODWILL, NATUREAND VALUATION
WORKSHEETNO. – 5
MULTIPLECHOICEQUESTONS:
1. Which one of the following statements is true
(a). Goodwill is a fictitious asset (b). Goodwill is a current asset
(c). Goodwill is a wasting asset (d). Goodwill is an intangible asset
2. Following are the factors affecting goodwill except
(a). Nature of business (b). Location of customers
(c). Technical know-how (d). Efficiency of management
ANSWER THE FOLLOWING QUESTIONS:
1. Give any two features of goodwill.
2. What are super profits?
3. What is meant by capitalisation of super profit?
4. How does nature of business affect the value of goodwill of a firm?
5. How does location affect goodwill of a business?
6. Give the formula of calculation of goodwill by capitalisation of average profit.
7. Give the formula of calculation of goodwill by capitalisation of super profit
method.
8. Give the formula of calculating goodwill by average profit method.