Match the goodwill valuation method with its calculation basis:

  Column A   Descriptions
1 Average Profits Method A Value based on expected excess earnings multiplied by a number of years’ purchase
2 Super Profits Method (using purchase of years) B Value calculated by deducting the actual firm’s capital from the capitalized value of average profits
3 Capitalisation of Average Profits Method C Value based on the aggregate of past profits over a period, multiplied by a number of years’ purchase
4 Capitalisation of Super Profits Method D Value equivalent to the capitalized value of super profits

1
1-C, 2-A, 3-B, 4-D
2
1-A, 2-C, 3-D, 4-B
3
1-C, 2-D, 3-A, 4-B
4
1-B, 2-A, 3-C, 4-D

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