Day: August 21, 2022

What is the correct treatment of non-purchased (inherent) goodwill in the accounts of a company?

Select ONE answer:

1. do not recognise its existence
2. include it in the Balance Sheet as an asset at valuation
3. include it in the Balance Sheet as an asset, to be amortised
4. write it off against reserves

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 1

1. Correct
2. Not correct
3. Not correct
4. Not correct

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