Tybaf || Valuation Of Goodwill

20 Questions | By Harjeet_san | Last updated: Mar 21, 2022 | Total Attempts: 111

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1.

Which of the following statement is true
- A.
  
  EVA shows the economic profit of the Co.
- B.
  
  For calculation of EVA WACC is required
- C.
  
  Both a & b
- D.
  
  None of the Above
2.

EPS depends on
- A.
  
  Net profit available to equity shareholders
- B.
  
  None of the Above
- C.
  
  Net profit available to preference shareholders
- D.
  
  Both a & b
3.

MVA is
- A.
  
  Market Value Added
- B.
  
  Machinery Value Added
- C.
  
  Both a & b
- D.
  
  None of the Above
4.

Super profit is
- A.
  
  Excess of average profit over normal profit
- B.
  
  Extra profit earned
- C.
  
  Average profit earned by similar companies
- D.
  
  None of the above
5.

Normal profit is
- A.
  
  Average profit earned
- B.
  
  Profit earned by similar companies in the same industry
- C.
  
  (a) and (b)
- D.
  
  None of the above
6.

Normal profit depends on
- A.
  
  Normal Rate of Return
- B.
  
  Average capital employed
- C.
  
  Both (a) and (b)
- D.
  
  None of the above
7.

Goodwill as per purchase of average profit method
- A.
  
  Average Profit
- B.
  
  Average profit x Amount of purchases
- C.
  
  Average Profit x No. of years purchases
- D.
  
  All of the above
8.

Goodwill as per purchase of super profit method is
- A.
  
  Super Profit
- B.
  
  Super Profit x amount of Purchases
- C.
  
  Super of Profit x No of year's Purchases
- D.
  
  None of the above
9.

Normal Rate of Return depends on
- A.
  
  Rate of Interest
- B.
  
  Rate of Risk
- C.
  
  Both a & b
- D.
  
  None of the above
10.

While both calculating capital employed
- A.
  
  Tangible trading assets should be considered
- B.
  
  Intangible assets should be considered
- C.
  
  Fictitious assets should be considered
- D.
  
  None of the above
11.

Any non-trading income included in the profit should be
- A.
  
  Eliminated
- B.
  
  Added
- C.
  
  Ignored
- D.
  
  None of the above
12.

Under capitalization profit method, Goodwill is equal to
- A.
  
  Capitalized Value of super profit at NRR
- B.
  
  Capitalized value of maintained profit
- C.
  
  Both a & b
- D.
  
  None of the Above
13.

Capital employed at the end of the year is 4, 20,000. Profit earned is 40.000. Average capital employed is
- A.
  
  4,20,000
- B.
  
  4,00,000
- C.
  
  4,40,000
- D.
  
  4,60,000
14.

Rate of interest is 11 % and the rate of risk is 9 %. The normal rate of return is
- A.
  
  11 %
- B.
  
  19 %
- C.
  
  20 %
- D.
  
  2 %
15.

Capital at the beginning of the year is 5,20,000 and the profit earned during the year is 60,000. The average capital employed year is
- A.
  
  5,50,000
- B.
  
  5,20,000
- C.
  
  5,80,000
- D.
  
  4,60,000
16.

The average Profit is 19,167 and the normal profit is 10,000. The Super Profit is
- A.
  
  3,29,167
- B.
  
  19,167
- C.
  
  10,000
- D.
  
  9,167
17.

Super Profit is Rs 9,167 and the Normal Rate of Return is 10 % Goodwill as per capitalization of the Super Profit method is equal to
- A.
  
  67,910
- B.
  
  91,670
- C.
  
  90,600
- D.
  
  95,000
18.

Which of the following statement is true
- A.
  
  Fair value is the yield value
- B.
  
  Fair value is the average of intrinsic and yield value
- C.
  
  Both A& B
- D.
  
  None of the above
19.

Shares are to be valued on
- A.
  
  Mergers
- B.
  
  Sale of shares
- C.
  
  Gift tax
- D.
  
  All of the above
20.

Quoted shares are those shares which are
- A.
  
  Listed on the stock exchange
- B.
  
  Quoted daily
- C.
  
  Quoted by the seller
- D.
  
  Quoted by the buyer