Goodwill MCQ Questions on Super Profits Method- Partnership accounts
This MCQ Test on the super profit method for goodwill valuation has 15 practice questions. Test your knowledge about the partnership accounts - super profit method, how to calculate super profits, adjustments made while calculating average profits, what are normal profits, what is normal rate of return etc. The quiz suits well for conceptual clarity for your board exams
CBSE class 12 accountancy MCQ questions
The below MCQ test is designed as per the latest syllabus prescribed by CBSE board. With the rise in weightage of MCQ questions, the practice of MCQ questions becomes very important. The quiz is equally useful for students of CUET exams.
How to attempt the quiz
One by one go through the below questions and select the right option. Do all the questions and in the end press submit. Instantly you will get your score and the explanation against each question. Go through your mistakes and reattempt the quiz any number of times as needed.
MCQ Quiz - Practice Questions
MCQ Quiz
Question 1
What is Super Profit?
B
Correct Answer: Difference between actual profit and normal profit
Super Profit is the excess of actual/average profit over normal business profit (normal return on capital employed).
Question 2
Super Profit represents profit earned:
D
Correct Answer: Above normal return on capital employed
Super Profit is the advantage of earning higher than normal return that similar businesses earn on capital employed.
Question 3
Normal Rate of Return means:
D
Correct Answer: Rate earned by similar businesses in same industry
Normal Rate of Return is the return on capital employed normally earned by other firms in similar industry.
Question 4
Capital Employed in Liabilities Side Approach is calculated as:
