All Courses
Get the App Signup / Login
Sign in Open App
B Com Exam  >  B Com Tests  >  Test: Valuation Of Goodwill And Shares - 1 - B Com MCQ

Test: Valuation Of Goodwill And Shares - 1 - B Com MCQ


Test Description

10 Questions MCQ Test - Test: Valuation Of Goodwill And Shares - 1

Test: Valuation Of Goodwill And Shares - 1 for B Com 2024 is part of B Com preparation. The Test: Valuation Of Goodwill And Shares - 1 questions and answers have been prepared according to the B Com exam syllabus.The Test: Valuation Of Goodwill And Shares - 1 MCQs are made for B Com 2024 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests for Test: Valuation Of Goodwill And Shares - 1 below.
Solutions of Test: Valuation Of Goodwill And Shares - 1 questions in English are available as part of our course for B Com & Test: Valuation Of Goodwill And Shares - 1 solutions in Hindi for B Com course. Download more important topics, notes, lectures and mock test series for B Com Exam by signing up for free. Attempt Test: Valuation Of Goodwill And Shares - 1 | 10 questions in 10 minutes | Mock test for B Com preparation | Free important questions MCQ to study for B Com Exam | Download free PDF with solutions
Test: Valuation Of Goodwill And Shares - 1 - Question 1
Save

In the context of business acquisitions, goodwill arises when the purchase price of a company exceeds the fair value of its:

Detailed Solution for Test: Valuation Of Goodwill And Shares - 1 - Question 1
Goodwill is the excess of the purchase price over the fair value of the net identifiable assets (tangible assets plus identifiable intangibles, net of liabilities).
Test: Valuation Of Goodwill And Shares - 1 - Question 2
Save

Which of the following is NOT a factor influencing the valuation of shares?

Detailed Solution for Test: Valuation Of Goodwill And Shares - 1 - Question 2
The size of the board of directors is not typically a factor that influences the valuation of shares.
1 Crore+ students have signed up on EduRev. Have you? Download the App
Test: Valuation Of Goodwill And Shares - 1 - Question 3
Save

What is the purpose of valuing shares in the context of a company?

Detailed Solution for Test: Valuation Of Goodwill And Shares - 1 - Question 3
Valuing shares is necessary for various purposes, including legal requirements, taxation, mergers, acquisitions, and more.
Test: Valuation Of Goodwill And Shares - 1 - Question 4
Save
Which method of valuing goodwill is based on the future maintainable profits of a firm?
Detailed Solution for Test: Valuation Of Goodwill And Shares - 1 - Question 4
The capitalisation method values goodwill based on the future maintainable profits and the normal rate of return.
Test: Valuation Of Goodwill And Shares - 1 - Question 5
Save
What is the purpose of adjusting profits in the valuation of goodwill using the future maintainable profit concept?
Detailed Solution for Test: Valuation Of Goodwill And Shares - 1 - Question 5
Adjusting profits helps eliminate non-recurring and extraordinary items to estimate the future maintainable profit accurately.
Test: Valuation Of Goodwill And Shares - 1 - Question 6
Save
In the capitalisation method, what is calculated based on the normal rate of return and the adjusted average profit?
Detailed Solution for Test: Valuation Of Goodwill And Shares - 1 - Question 6
The capitalised value of profit is calculated using the normal rate of return and the adjusted average profit.
Test: Valuation Of Goodwill And Shares - 1 - Question 7
Save
Which valuation method involves multiplying the super-profit by a certain number of years' purchase?
Detailed Solution for Test: Valuation Of Goodwill And Shares - 1 - Question 7
The capitalisation method involves multiplying super-profit by a certain number of years' purchase to determine goodwill.
Test: Valuation Of Goodwill And Shares - 1 - Question 8
Save
The sliding scale method for valuing goodwill involves:
Detailed Solution for Test: Valuation Of Goodwill And Shares - 1 - Question 8
The sliding scale method adjusts the multiplication of super-profit based on different ranges of profit.
Test: Valuation Of Goodwill And Shares - 1 - Question 9
Save
Which method of valuing goodwill takes into account the future profits of the business?
Detailed Solution for Test: Valuation Of Goodwill And Shares - 1 - Question 9
The Super-Profit Method considers the future profits of the business to determine the value of goodwill.
Test: Valuation Of Goodwill And Shares - 1 - Question 10
Save
What is the main difference between the simple average profit method and the weighted average profit method?
Detailed Solution for Test: Valuation Of Goodwill And Shares - 1 - Question 10
The weighted average profit method assigns different weights to past years' profits for a more accurate valuation of goodwill.
Information about Test: Valuation Of Goodwill And Shares - 1 Page
In this test you can find the Exam questions for Test: Valuation Of Goodwill And Shares - 1 solved & explained in the simplest way possible. Besides giving Questions and answers for Test: Valuation Of Goodwill And Shares - 1, EduRev gives you an ample number of Online tests for practice
Download as PDF

Important Questions for Valuation Of Goodwill And Shares - 1

Find all the important questions for Valuation Of Goodwill And Shares - 1 at EduRev.Get fully prepared for Valuation Of Goodwill And Shares - 1 with EduRev's comprehensive question bank and test resources. Our platform offers a diverse range of question papers covering various topics within the Valuation Of Goodwill And Shares - 1 syllabus. Whether you need to review specific subjects or assess your overall readiness, EduRev has you covered. The questions are designed to challenge you and help you gain confidence in tackling the actual exam. Maximize your chances of success by utilizing EduRev's extensive collection of Valuation Of Goodwill And Shares - 1 resources.

Valuation Of Goodwill And Shares - 1 MCQs with Answers

Prepare for the Valuation Of Goodwill And Shares - 1 within the B Com exam with comprehensive MCQs and answers at EduRev. Our platform offers a wide range of practice papers, question papers, and mock tests to familiarize you with the exam pattern and syllabus. Access the best books, study materials, and notes curated by toppers to enhance your preparation. Stay updated with the exam date and receive expert preparation tips and paper analysis. Visit EduRev's official website today and access a wealth of videos and coaching resources to excel in your exam.

Online Tests for Valuation Of Goodwill And Shares - 1

Practice with a wide array of question papers that follow the exam pattern and syllabus. Our platform offers a user-friendly interface, allowing you to track your progress and identify areas for improvement. Access detailed solutions and explanations for each test to enhance your understanding of concepts. With EduRev's Online Tests, you can build confidence, boost your performance, and ace Valuation Of Goodwill And Shares - 1 with ease. Join thousands of successful students who have benefited from our trusted online resources.
© EduRev
Education Revolution
Follow Us
Signup to see your scores go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup