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12th Class Accountancy Goodwill Question Bank MCQs - Goodwill : Nature And Valuation

  • question_answer
    Under the capitalization method, the formula for calculating the goodwill is:

    A) Super profits multiplied by the rate of return

    B) Average profits multiplied by the rate of return

    C) Super profits divided by the rate of return \[\times \] 100

    D) Average profits divided by the rate of return \[\times \] 100

    Correct Answer: C

    Solution :

    Super profits divided by the rate of return \[\times \] 100


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