Goodwill is classified as: MCQ with Answer and Explanation

Question

Share Report Error

Goodwill is classified as:

A. Tangible asset

B. Fictitious asset

C. Intangible asset

D. Current asset

Answer: Option C

Solution (By JKSSB Mock Tests)

Goodwill is an intangible asset representing the value of a business's reputation, customer relationships, etc.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Request complete Subject PDF

Discuss this Question (0)

No comments yet. Be the first to start the discussion!

Practice More Accountancy and Book Keeping Questions

Question #1

Share Report

A 'Shell Company' is a term used for:

A. A company with substantial assets

B. A company with no active business or significant assets

C. A listed company

D. A government company

View Answer & Solution Discuss

Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option B

Explanation:
Shell companies exist mainly on paper with no significant operations or assets, often used for illicit activities.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #2

Share Report

Which of the following is considered a 'Recent Development' in environmental accounting?

A. Cash Book Management

B. Trial Balance Preparation

C. Carbon Credit Accounting

D. Double Entry System

View Answer & Solution Discuss

Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option C

Explanation:
Accounting for carbon credits (emissions trading) is a modern concept dealing with intangible assets related to environmental compliance.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #3

Share Report

S1: Audit is an independent examination of financial statements. S2: Audit is conducted to detect all frauds and errors. Which statement(s) is/are correct?

A. Neither S1 nor S2

B. S1 only

C. Both S1 and S2

D. S2 only

View Answer & Solution Discuss

Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option B

Explanation:
Audit is an independent examination to express an opinion on the financial statements. While it aims to detect material misstatements, it cannot guarantee the detection of *all* frauds and errors due to inherent limitations like sampling and collusion. S1 is correct, S2 is incorrect.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Explore All Accountancy and Book Keeping MCQs