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
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.
Question : Weighted average profit method of calculating goodwill is used when
Question : Following are the methods of calculating goodwill except:
Question : Under the Capitalisation Method of valuation of Goodwill, the formula for calculating goodwill is:
Question : Under which method of valuation of goodwill, normal rate of return is not considered?
Question : Which function will be used for calculating interest included in installment of a loan ?
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