Under the Super Profit method, Goodwill is calculated as: MCQ with Answer and Explanation

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Under the Super Profit method, Goodwill is calculated as:

A. Capital Employed x Normal Rate of Return

B. Average Profit x Number of years' purchase

C. Super Profit / Normal Rate of Return

D. Super Profit x Number of years' purchase

Answer: Option D

Solution (By JKSSB Mock Tests)

Super profit is the excess of actual average profit over normal profit. Goodwill is Super Profit multiplied by the agreed number of years' purchase.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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GST in India is a:

A. Direct tax

B. Wealth tax

C. Origin-based tax

D. Destination-based consumption tax

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Correct Answer: Option D

Explanation:
GST is levied where goods and services are consumed rather than where they are produced.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #2

In government accounting under PFMS, what does the SNA model stand for?

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Correct Answer: Option C

Explanation:
The Single Nodal Agency (SNA) model ensures states operate a single account for each Centrally Sponsored Scheme to prevent idle float of funds.

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Under GST, the 'E-way bill' is not required for the movement of goods:

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Correct Answer: Option D

Explanation:
An e-way bill is not required if the consignment value is below ₹50,000, or for specific movements like goods being sent to a transporter for the purpose of transportation from the consignor's place of business.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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