Question : Assertion (A): An older business is likely to have lesser goodwill.
Reason (R): The number of customers of an older business will be more in comparison to the customers of new entrants.

Question : Assertion (A): Goodwill belongs to the category of intangible assets such as patents, trademarks, copy rights, etc.
Reason (R): Goodwill cannot be seen or touched.

Question : Assertion (A): Goodwill requires adjustment at the time of reconstitution of a firm.
Reason (R): The nature and location of business do not affect the valuation of goodwill.

Question : Assertion (A): Goodwill is as an intangible asset.
Reason (R): The goodwill is calculated by multiplying the past average profits by the number of years during which the anticipated profits are expected to accrue.

Question : Assertion (A): Over a period of time, a well-established business develops an advantage of good name, reputation and wide business connections.
Reason (R): Self-generated goodwill is shown as an asset in the books.