Question

Number of years purchase means the number of years for which the firm is likely to earn same amount of profit after change of ownership because of efforts put in the past. true or false​

Answer 1

Answer:

Number of years' purchase is the number of years' for which the firm will expect to earn the same amount of profit because of the past efforts of the firm after change of ownership.

Answer 2

Question) What is meant by number of years' purchase at the time of valuation of goodwill?

Answer) Number of years purchase means the number of years for which the firm is likely to earn same amount of profit after change of ownership because of efforts put in the past.

So, the answer is true.