MCQ on Valuation of Goodwill and Shares: Check the below Corporate and Management Accounting MCQ on Valuation of Goodwill and Shares with Answers Pdf free download. Corporate and Management Accounting MCQ on Valuation of Goodwill and Shares Questions for Corporate and Management Accounting with Answers were prepared based on the latest exam pattern. We have provided Corporate and Management Accounting MCQ on Valuation of Goodwill and Shares with Answers to help students understand the concept very well. Students should practice CS Executive MCQ on Valuation of Goodwill and Shares Questions with Answers based on the latest syllabus.

MCQ on Valuation of Goodwill and Shares

1. Net asset value per share is also known as –
(A) Internal value per share
(B) Intrinsic value per share
(C) Economic value per share
(D) Recoverable value per share

2. While deciding net asset value, fictitious assets –
(A) Should be considered
(B) Should not be considered
(C) Added to total assets
(D) Valued separately

3. Which of the following is deducted while calculating net assets available to equity shareholders?
(A) Proposed preference dividend
(B) Share suspense account
(C) Know-how
(D) Non-trading investment

4. When controlling shares are to be sold then which of the following will be the appropriate base for valuation of shares:
(A) Rate of dividend
(B) Rate of earning
(C) Rate of gross profit
(D) Rate of risk-free return

5. In which of the following cases valuation is essential?
(A) Conversion of debt instruments into shares.
(B) On directions of Tribunal or Authority or Arbitration Tribunals.
(C) When issuing shares to the public either through an Initial Public Offer or by the offer for sale.
(D) All of the above

6. If the intrinsic value of a share of common stock is less than its market value, which of the following is the most reasonable conclusion?
(A) The stock has a low level of risk
(B) The stock offers a high dividend payout ratio
(C) The market is undervaluing the stock
(D) The market is overvaluing the stock

7. Fair value is the average of the –
(A) Intrinsic value and yield value
(B) Internal value and external value
(C) Capitalized value and earning value
(D) Notional value and book value

8. As per the valuation of equity shares based on the price-earnings ratio, the shares are valued on the basis of ______ multiplied by the price-earnings ratio.
(A) Dividend per share
(B) Earnings per share
(C) Bonus per share
(D) Interest per share

9. Market-based methods of valuation should not be adopted when –
(A) When business is too small
(B) When assets are less than liabilities of the business
(C) In case of significant and unusual fluctuations in market price
(D) It is difficult to estimate the realizable value in case of going concerned

10. Which of the following Accounting Standard deals with Intangible Assets?
(A) AS-22
(B) AS-24
(C) AS-26
(D) AS-28

11. Which of the following is required to be taken into consideration while valuing equity shares of the company?
(A) Size of the block of shares
(B) Restricted transferability aspect
(C) Dividends
(D) All of the above

12. As per AS-26, the intangible asset can be recognized at –
(A) Research phase
(B) Development Phase
(C) Both (A) and (B)
(D) Either (A) or (B)

13. As per AS-26, expenditure on research or on the research phase of an internal project should be recognized when it is incurred.
(A) An Asset
(B) An expense
(C) Profit
(D) Liability

14. Which of the following is NOT the method of valuation of Goodwill?
(A) Average profit Method
(B) Super profit Method
(C) Capitalization Method
(D) Straight-line Method

15. Which of the following shall not be taken into consideration while calculating Capital Employed?
(A) Discount on issue of debentures
(B) Preliminary expenses
(C) Fictitious assets
(D) All of the above

16. In the balance sheet shares appears at ______.
(A) Face value
(B) Adjusted market value
(C) Market price
(D) Paid-up value

17. Which of the following is not required while calculating yield value per share?
(A) Expected return rate
(B) Normal return rate
(C) Superprofit
(D) Paid-up value per share

18. Goodwill is –
(A) Intangible asset
(B) Valuable asset
(C) Non-current asset
(D) All of the above

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By Team Learning Mantras