A firm's assets ₹6,00,000, liabilities ₹1,00,000, normal rate 10%, average profit ₹75,000. Value of goodwill by capitalization of average profit method (total value less net assets) is: MCQ with Answer and Explanation

Explanation:
As per Companies Act 2013, financial statements comprise balance sheet, profit and loss account, cash flow statement, statement of changes in equity and any explanatory notes.

Explanation:
Fictitious assets (e.g., preliminary expenses, debit balance of P&L) are not true assets; they are unamortized expenses/losses with zero resale value.

Explanation:
According to Schedule III, a liability is current if it is due within 12 months OR within the entity's normal operating cycle (15 months here).