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easyMCQCUET Accountancy2026Accountancy
1 mark

Which of the following is NOT a recognized method for the valuation of goodwill?

  1. A
    Average profit method
  2. B
    Super profits method
  3. C
    Capitalisation method
  4. D
    Average super profit capitalization method

Solution & Step-by-step Explanation

Standard accounting principles recognize three primary methodologies for goodwill valuation:Average Profit MethodSuper Profit MethodCapitalisation Method (either of Average Profits or Super Profits)There is no concept or composite formula called the "Average super profit capitalization method".

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Which of the following is NOT a recognized method for the valuation of goodwill?
A
Average profit method
B
Super profits method
C
Capitalisation method
D
Average super profit capitalization method

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