Accounting Multiple Choice Question – 25 May 2020

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

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Goodwill maIn the financial statements of a company, goodwill should be shown . . .?

Select ONE answer:

  1. under the heading ‘current assets’.
  2. under the heading ‘intangible fixed assets’.
  3. under the heading ‘tangible fixed assets’.
  4. None of the above.

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 3

  1. Not correct
  2. Not correct
  3. Correct – As goodwill will normally have an expected useful economic life of more than one year, it is a fixed asset. As it does not have physical substance, it is an intangible asset.
  4. Not correct

 

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