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easyMCQCUET Accountancy 2025 30 May Shift 22026Accountancy
1 mark

The important methods of valuation of goodwill are as follows:(A) Average Profits Method(B) Normal Profits Method(C) Super Profits Method(D) Capitalization MethodChoose the correct answer from the options given below:

  1. A
    (A), (B) and (D) only
  2. B
    (A), (C) and (D) only
  3. C
    (A), (B), (C) and (D)
  4. D
    (B), (C) and (D) only

Solution & Step-by-step Explanation

The standard core methods recognized for valuing goodwill are:Average Profits MethodSuper Profits MethodCapitalization Method (which includes Capitalization of Average Profits and Capitalization of Super Profits).There is no standalone "Normal Profits Method"; normal profit is merely an intermediate component calculated inside the Super Profit and Capitalization frameworks. Hence, (A), (C), and (D) are the correct choices.

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The important methods of valuation of goodwill are as follows:(A) Average Profits Method(B) Normal Profits Method(C) Super Profits Method(D) Capitalization MethodChoose the correct answer from the options given below:
A
(A), (B) and (D) only
B
(A), (C) and (D) only
C
(A), (B), (C) and (D)
D
(B), (C) and (D) only

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