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    State the order of steps required for valuation of goodwill using weighted Average Profit method. A. Assign weights to each year’s profit/loss B.
    Question

    State the order of steps required for valuation of goodwill using weighted Average Profit method.
    A. Assign weights to each year’s profit/loss
    B. Multiply weighted average Profit with number of years purchase
    C. Find goodwill
    D. Calculate adjusted profit
    E. Calculate weighted average profit
    Choose the correct answer from the options given below:

    A.

    E, A, D, B, C

    B.

    E, A, D, C, B

    C.

    D, E, A, B, C

    D.

    D, A, E, B, C

    Correct option is D

    The steps for the valuation of goodwill using the Weighted Average Profit Method are:
    D. Calculate adjusted profit
    A. Assign weights to each year's profit/loss
    E. Calculate weighted average profit
    B. Multiply weighted average Profit with number of years purchase
    C. Find goodwill

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