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
Answer (1)
19th Jan, 2024
Correct Answer: When profits show a trend
Solution : When profits show a trend, in that case weighted average method is used for calculating goodwill.
Hence, the correct option is 2.
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