When a new partner brings his share of goodwill in cash, the amount is credited to: MCQ with Answer and Explanation

Explanation:
Goodwill is indeed an intangible asset. However, by definition, intangible assets lack physical substance. Therefore, goodwill does not have a physical existence. A is true, R is false.

Explanation:
Prudence ensures conservatism by providing for all foreseeable losses but not anticipating profits. Materiality allows accountants to bypass strict accounting rules for insignificant items. Both are correct.

Explanation:
The gaining ratio is the ratio in which the continuing partners acquire the share of the retiring or deceased partner.