Practicing Success
Which of the following is not used while determining the value of goodwill through the average profit method? Choose the correct answer from the options given below. |
A, D, E, F C & E D, E, F D & F |
D & F |
The correct answer is option 4- D & F. The correct sequence of calculating goodwill through average profit method is- Thus, from the method of average profit, we can see that there is no use of super profit and normal rate of return while calculating goodwill. So, option 4 is correct answer. |