Goodwill is classified as: MCQ with Answer and Explanation

Goodwill is classified as:

A. Fictitious asset

B. Tangible asset

C. Intangible asset

D. Current asset

Answer: Option C

Goodwill is an intangible asset representing the value of a business's reputation, customer relationships, etc.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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Question #1 Report Error

Under GST, the Reverse Charge Mechanism (RCM) means:

A. Liability to pay tax shifts from the supplier to the recipient of goods/services

B. The government pays tax to the supplier

C. The tax rate is negative

D. Exports are tax-free

Correct Answer: Option A

Explanation:
Normally, the supplier collects and pays GST. Under RCM, the buyer/recipient is directly liable to pay the tax to the government.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #2 Report Error

In the absence of a partnership deed, profits are shared:

A. In the ratio of capital

B. Based on experience

C. Equally

D. Based on age

Correct Answer: Option C

Explanation:
As per Indian Partnership Act, 1932, in absence of a deed, profits and losses are shared equally among partners.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #3 Report Error

A social audit in India under MGNREGA is conducted by:

A. CAG directly

B. Gram Sabha through social audit units

C. External auditor appointed by government

D. Chartered accountant

Correct Answer: Option B

Explanation:
MGNREGA mandates social audit by Gram Sabha with facilitation by social audit units.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping