The weighted Average Profit Method of calculating goodwill is useful when
The weighted Average Profit Method of calculating goodwill is useful when
a) Profits are not similar over the years
b) Profits show a trend either rising or failing
c) Profits are higher in one year and lower in another
d) Profits are similar in all the years.
Anurag Pathak Changed status to publish April 16, 2023
Ans – b)
Explanation:-
When profits show a trend either rising or falling the weighted average profit method is useful.
Anurag Pathak Changed status to publish April 16, 2023
