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.
Option 1: Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
Option 2: Both Assertion (A) and Reason (R) are true but Reason (R) is not the correct explanation of Assertion (A)
Option 3: Assertion (A) is true but Reason (R) is false
Option 4: Assertion (A) is false but Reason (R) is true
Correct Answer: Both Assertion (A) and Reason (R) are true but Reason (R) is not the correct explanation of Assertion (A)
Solution : Goodwill is as an intangible asset and it is not a fictitious asset. Hence, the correct option is 2.
Question : Assertion (A): Partnership Deed is a legal document signed by all the partners. Reason (R): Any type of charitable institution running as a not-for-profit organization will not be
Question : Assertion (A): The partners are the agents as well as principals of the firm. Reason (R): Partnership is a business relationship among two or more persons to share profits and losses of
Question : Assertion (A): Weighted average profit method is considered better than the simple average profit method because it assigns more weightage to the profits of the latest year which is more
Question : Assertion (A): Salary and commission are payable to the working partners for their efforts. Reason (R): No partner shall be paid such remuneration as salary, commission, etc. if the
Question :
Assertion (A): Dissolution of
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