Vipin Awasthi found his department understaffed and improved cooperation with others. What level of management was he at?
Anonymous Quiz
36%
Middle Level Management
22%
Top Level Management
23%
Junior Level Management
19%
Supervisory Level Management
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The average profit method is grounded on the assumption that a new business:
Anonymous Quiz
21%
Will be profitable from the first year
30%
Will take many years to be profitable
30%
Will not earn any profits during its initial years
19%
Will surpass a running business in terms of profits
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The person who buys a running business should pay for goodwill equivalent to:
Anonymous Quiz
14%
The total assets of the business
29%
The profits likely to be earned in the future
24%
The profits earned in the past few years
32%
The average profits he expects to earn in the initial years
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In the formula Goodwill = Average Profits Γ Number of yearsβ purchase; Number of yearsβ purchase denotes:
Anonymous Quiz
34%
The estimate of how long the company can sustain its current profit levels
49%
The number of years the firm will be able to earn the profits in future
9%
The number of years the firm will be able to declare dividend
7%
The number of years the firm will need to recover acquisition cost
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Which of the following should be deducted from the net profit of a year when calculating average profits?
Anonymous Quiz
29%
Abnormal income and Income from investments
20%
Abnormal loss and Depreciation
26%
Abnormal income, Abnormal loss, and Depreciation
25%
All of the above
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What is the main characteristic of the weighted average profit method?
Anonymous Quiz
42%
It assigns the highest weight to the profit of the most recent year.
33%
It assigns equal weights to each year's profit.
15%
It assigns decreasing weights to each year's profit.
10%
It assigns increasing weights to each year's loss.
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When is the weighted average profit method preferred?
Anonymous Quiz
31%
When profits are constant over years.
28%
When profits show mixed trends.
15%
When profits are irregular.
26%
When profits are continuously rising or falling.
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Given profits: 2013 βΉ4,00,000; 2014 βΉ3,98,000; 2015 βΉ4,50,000; 2016 βΉ4,45,000; 2017 βΉ5,00,000. Calculate goodwill (4 years' purchase of 5 yearsβ average profit).
Anonymous Quiz
24%
βΉ17,54,400
31%
βΉ4,38,600
31%
βΉ21,93,000
13%
None of These
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Profits: 2018β19 βΉ46,000 (incl. abnormal gain βΉ16,000); 2019β20 βΉ80,000 (after abnormal loss βΉ24,000); 2020β21 βΉ76,000. Goodwill (2 years' purchase of avg. profit) = ?
Anonymous Quiz
21%
βΉ1,34,666
44%
βΉ2,10,000
29%
βΉ1,40,000
6%
βΉ70,000
Total weighted profits of Roswa Co. (2016β2019) with weights 1,2,3,4 and profits 50,000,70,000,60,000,1,00,000 = ?
Anonymous Quiz
14%
βΉ3,85,000
33%
βΉ4,80,000
41%
βΉ2,80,000
12%
βΉ7,70,000
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Value of goodwill on basis of 3 years' purchase of weighted average profit (from above data) = ?
Anonymous Quiz
20%
βΉ2,31,000
36%
βΉ77,000
35%
βΉ1,15,500
9%
βΉ23,10,000
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