In partnership, the 'Goodwill' of the firm represents: MCQ with Answer and Explanation

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In partnership, the 'Goodwill' of the firm represents:

A. The physical assets of the firm

B. The cash balance of the firm

C. The reputation and brand value of the firm

D. The liabilities of the firm

Answer: Option C

Solution (By JKSSB Mock Tests)

Goodwill is an intangible asset that represents the value of the firm's reputation, customer attraction, and brand name.

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

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Which branch of accounting focuses on historical data to present the financial position to external users?

A. Responsibility Accounting

B. Financial Accounting

C. Cost Accounting

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Correct Answer: Option B

Explanation:
Financial accounting records past events to prepare statements like P&L and Balance Sheet for external stakeholders (investors, creditors, government).

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The 'GST Audit' is required for taxpayers with turnover exceeding:

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Correct Answer: Option D

Explanation:
GST audit by a chartered accountant/cost accountant is required if aggregate turnover exceeds ₹2 crore.

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Correct Answer: Option B

Explanation:
All costs incurred before a fixed asset is ready for its intended use are capitalized.

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