Goodwill A/c is a/an__________?
Correct answer: C. Intangible Asset
- A. Nominal A/c
- B. Tangible Asset
- C. Intangible Asset
- D. Fictitious Asset
Explanation
Goodwill has no physical substance but represents benefits such as reputation, customer loyalty and business connections, so it is an intangible asset. It is not a nominal or fictitious asset.
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About Accounting Principles
Accounting principles explain the rules used to record, classify and report business transactions. Coverage includes the accounting equation, double-entry system, accrual and cash bases, matching and prudence concepts, consistency, going concern, business entity, and the difference between capital and revenue items.
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