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P1 C3 VALUATION OF GOODWILL — Elements of Account STD 12 Commerce — Question

Gujarat BoardEnglish MediumSTD 12 CommerceElements of AccountP1 C3 VALUATION OF GOODWILL1 Mark
MCQ
Which method is appropriate for the computation of goodwill when every year profit increasing?
  • A
    simple average
  • ✓
    weighted average
  • C
    annual growth rate
  • D
    compound growth rate
✓

Answer

Correct option: B.
weighted average

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