Question

It's better to use the 'Weighted Average Profit' method of calculation of Goodwill when ______.

Options

• The profits show a rising trend only

• The profits show a diminishing trend only

• The profits may show either rising or diminishing trend

• The profits don't show any rising or diminishing trend

Answer 1

It's better to use the 'Weighted Average Profit' method of calculation of Goodwill when the profits may show either rising or diminishing trend.