The 'Goodwill' arising on acquisition is: MCQ with Answer and Explanation

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The 'Goodwill' arising on acquisition is:

A. Capitalised and depreciated

B. Not amortised but tested for impairment annually

C. Amortised over 10 years

D. Written off immediately

Answer: Option B

Solution (By JKSSB Mock Tests)

Goodwill is not amortised but subject to annual impairment testing as per Ind AS 36.

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

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Practice More Accountancy and Book Keeping Questions

Question #1

NFRA has jurisdiction over:

A. All companies

B. Listed companies and large unlisted companies

C. Only banks

D. Only public sector units

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Correct Answer: Option B

Explanation:
NFRA covers listed companies and such class of unlisted companies as prescribed.

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

Question #2

In the context of single entry system, 'Net Worth' means:

A. Total liabilities

B. Total assets

C. Excess of assets over liabilities

D. Cash in hand

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Correct Answer: Option C

Explanation:
Net worth = Total assets - Total liabilities, representing owner's equity.

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Question #3

The 'Transaction Price' under Ind AS 115 includes:

A. Only cash received

B. Only fixed consideration

C. Variable consideration, if it is highly probable that a significant reversal will not occur

D. Only invoice amount

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Correct Answer: Option C

Explanation:
Transaction price includes variable consideration to the extent that it is probable there won't be a significant reversal.

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

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