Question : As per __________, only purchased goodwill can be shown in the Balance Sheet:
Option 1: AS 37
Option 2: As 26
Option 3: Section 37
Option 4: AS 37
Correct Answer: As 26
Solution : Answer = AS 26
As per AS 26 (Accounting Standard 26) titled "Intangible Assets," only purchased goodwill can be shown in the balance sheet. This standard provides guidelines on the recognition, measurement, presentation, and disclosure of intangible assets, including goodwill, ensuring consistency and transparency in financial reporting. Hence, the correct option is 2.
Question : Which statements is not true with respect to AS-26?
Option 1: Purchased goodwill can be shown in the Balance Sheet assets side.
Option 2: Revalued goodwill can be shown in the Balance Sheet
Option 3: Both purchased goodwill and revalued can be shown in the Balance Sheet
Option 4: None of the above
Question : Increase in value of Goodwill means___________
Option 1: Goodwill purchased
Option 2: Non purchased goodwill ( self - Generated goodwill )
Option 3: Both 1 and 2
Question : Donations received for a special purpose:
Option 1: Should be shown on the Asset side of the Balance Sheet
Option 2: Should be shown on the Liability side of the Balance Sheet
Option 3: Should be shown on the credit side of the Income and Expenditure Account
Option 4: Should not be shown anywhere
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