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

  • question_answer
    Weighted Average Method of calculating Goodwill is used when:

    A) Profits are almost same every year (including loss in one year only)

    B) Profits are not equal (increasing in one year and decreasing in other year)

    C) Profits are showing increasing trends/decreasing trends

    D) There are regular losses in the business

    Correct Answer: C

    Solution :

    Profits are showing increasing trends/decreasing trends


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