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Question : Choose Which of the following statements is incorrect in respect of goodwill?
 

Option 1: Fictitious asset

Option 2: An intangible asset

Option 3: Both 1 and 2

Option 4: None of the above


Team Careers360 3rd Jan, 2024
Answer (1)
Team Careers360 23rd Jan, 2024

Correct Answer: Fictitious asset


Solution : Answer = Fictitious asset

Goodwill is not a fictitious asset; it is a genuine intangible asset representing the reputation, brand value, and customer loyalty of a business. It's recognized on the balance sheet when a company is acquired for a price greater than the fair market value of its net assets.
​​​​​​​Hence, the correct option is 1.

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