Question

Which of the following statement(s) is/are not correct?

1. Goodwill is the present value of a firm's anticipated excess earnings.
2. Goodwill is a fictitious asset.
3. Goodwill is an intangible asset.
4. Goodwill is affected by the location of business.

Options

• Only (i)

• Both (i) and (iii)

• Only (ii)

• Only (iv)

Answer 1

Only (ii)

Explanation:

Goodwill is not a fictitious asset; it is an intangible asset with real value.