Question : Goodwill is
Option 1: Tangible Fixed Assets
Option 2: Other Current Liabilities
Option 3: Intangible Assets
Option 4: Short-term Borrowings
Correct Answer: Intangible Assets
Solution : Answer = Intangible Assets
Goodwill is categorized as an intangible asset on a company's balance sheet. It represents the value of a business's reputation, brand, customer relationships, and other non-physical assets. Unlike tangible fixed assets or current liabilities, goodwill reflects the intangible value of a company's reputation and relationships. Hence, the correct option is 3.
Question : Which of the following statements is false?
Option 1: Total Assets = Fixed Assets + Non-current Investments + Current Assets
Option 2: Long-term Borrowings or Debt = Total Borrowing - Short-term Borrowings
Option 3: Total Assets = Shareholders Funds + Long term Borrowings + Short term Borrowings + Other Current liabilities
Option 4: None of the above.
Question : Creditors are
Option 3: Intangible Assets under Development
Option 4: Trade payable
Question : Goodwill and patents fall under the category of ________.
Option 1: Current assets
Option 2: Liquid assets
Option 3: Intangible assets
Option 4: Tangible assets
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