Advertisements
Advertisements
Question
Assertion (A): Goodwill is a fictitious asset.
Reason (R): Goodwill has a realisable value.
Which one of the following is correct?
Options
Both Assertion and Reason are correct, and Reason is the correct explanation for Assertion.
Both Assertion and Reason are correct, but Reason is not the correct explanation for Assertion.
Assertion is false and Reason is true.
Assertion is true and Reason is false.
MCQ
Assertion and Reasoning
Advertisements
Solution
Assertion is false and Reason is true.
Explanation:
Goodwill is not a fictitious asset; it is an intangible asset with real value because it helps a business earn excess profits. Unlike fictitious assets, goodwill has realizable value and can be sold along with the business, even though it has no physical form.
shaalaa.com
Is there an error in this question or solution?
