1. Following are the methods of calculating goodwill except:a)Super profit method b) Average profit method c) Weighted Average profit method d) Capital profit method

2. Weighted average profit method of calculating goodwill is used when:(a) Profits are not equal(b) Profits show a trend(c) Profits are fluctuating(d)None of the above

3. Z is admitted to a firm for 1/4 share in the profits for which he brings in Rs. 10000towards premium for goodwill, it will be taken by the old partners in a) The new profit sharing ratio b) The old Profit sharing ratio c) the Sacrificing ratio d) None of the options

4. Which of the following is not true with respect to Admission of a partner?a.A new partner can be admitted if it is agreed in the partnership deed.b.If all the partners agree, a new partner can be admitted.c.A new partner has to bring relatively higher capital as compared to the existing partners.d.A new partner gets right in the assets of the firm

5. Capital invested in a firm is5,00,000.Normal rate of return is 10% .Average profit of the firm are64,000(after an abnormal loss of 4,000). Value of goodwill at four times the super profits will be:(a) Rs.72,000(b) Rs. 40,000(c) Rs. 2,40,000(d) 1,80,000

6. Which of the following is True in relation to goodwill?(a) Goodwill is a fictitious asset.(b) Goodwill is a current asset.(c) Goodwill is a wasting asset.(d) Goodwill is an intangible asset.

7. Identify the correct set for the following:

(a)(A)—(i),(B)—(ii),(C)—(iii)(b)(A)—(iii),(B)—(ii),(C)—(i)(c)(A)—(ii),(B)—(iii),(C)—(i)(d) (A)—(iii), (B)—(i), (C)—(ii)

8. General Reserve at the time of admission of a Partner is transferred to:(a)Revaluation  Account(b)Old Partners’ Capital Accounts(c)Neither (d) Both (a) and (b)

9. The profit on reissue of forfeited shares is transferred to :(a)General Reserve(b)Capital Redemption Reserve(c)Capital Reserve(d) Revenue Reserve 

10.Maximum limit of premium on shares is:(A.)32%(B.)20%(C.)No limit(D.) 100%

11. The part of authorized capital which can be called up only on the Company being wound up is called :(a) Issued Capital(b) Unsubscribed Capital(c) Reserve Capital(d) None of these

12. Amount of money not received out of called up capital is:(A.) Added to share capital(B.) Subtracted from share capital(C.) Shown as current liabilities(D.) Shown as current asset

13. Gama Chemicals Ltd. is a newly formed company. How much discount per share can it allow for issuing its shares to the public ?(a) 6%(b) 10%(c) 5%(d) None of the above 

14. Shares can be forfeited for :(a) For non – payment of call money(b) For failure to attend meetings(c) For failure to repay the loan to the bank(d) For which shares are pledged as a security to 

15. Capital of a Company is divided in units which is called :a) Debenture b) Share c) Stock d) Bond

16. The owners of the shares are called :(a) Share Capital(b) Shareholders(c) Creditors(d) Debtors 

17. Which one of the following is not a part of subscribed capital:A) Equity shares issued to vendor B) Preference shares of convertible type C) Forfeited shares D) Bonus shares

18. Authorised Capital of a Company is mentioned in :a) Memorandum of Association b) Articles of Association c) Prospectus d) Statement in lieu of Prospectus

19. The first stage of Incorporating a Company is :(a) Registration(b) Promotion(c) Commencement of business(d) None of these

20. Capital raised by issue of shares is called a) Share capital.b) Authorised Capital c) Called up Capital d) None of the options