Goodwill is classified as: MCQ with Answer and Explanation

Goodwill is classified as:
A. Fictitious asset
B. Tangible 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.

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Practice More Accountancy and Book Keeping Questions

Question #1
In standard costing, the Material Yield Variance is calculated as:
A. (Standard Price - Actual Price) x Actual Quantity
B. (Actual Yield - Standard Yield) x Standard Cost per unit of Yield
C. (Actual Mix - Standard Mix) x Standard Price
D. (Standard Yield - Actual Yield) x Standard Cost per unit of Yield

Correct Answer: Option D


Explanation:
Material Yield Variance measures the difference between the actual output and the standard output expected from the actual input. It is calculated as (Standard Yield - Actual Yield) x Standard Cost per unit of Yield. A positive value indicates a favorable variance.

Question #2
A Debit Voucher is specifically prepared for:
A. Purchase returns on credit
B. Cash receipts
C. Credit sales
D. Cash payments

Correct Answer: Option D


Explanation:
Debit vouchers are documentary evidence for cash payments made to suppliers, for expenses, or for asset purchases.

Question #3
A: A partner has the right to inspect the books of accounts of the firm. R: This right is implied in the Partnership Act, 1932. Choose the correct option.
A. A is true but R is false
B. Both A and R are true and R is the correct explanation of A
C. Both A and R are true but R is NOT the correct explanation of A
D. A is false but R is true

Correct Answer: Option B


Explanation:
Every partner has the right to access and inspect the firm's books to ensure transparency and protect their interest. This right is expressly provided under Section 12(d) of the Indian Partnership Act, 1932. R correctly explains the legal basis.