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easyMCQCUET Accountancy 2025 16 May Shift 12026CUET Accountancy
1 mark

Accounting principles classify Goodwill as a/an:

  1. A
    Tangible Asset
  2. B
    Intangible Asset
  3. C
    Fictitious Asset
  4. D
    Current Asset

Solution & Step-by-step Explanation

Goodwill is an asset that lacks physical substance but possesses clear commercial value due to enterprise reputation and superior earnings capacity. Therefore, it is classified as an Intangible Asset. It is not a fictitious asset because it has real realizable sale value when a business is sold as a going concern.

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Accounting principles classify Goodwill as a/an:
A
Tangible Asset
B
Intangible Asset
C
Fictitious Asset
D
Current Asset

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