is goodwill a fictitious assets

Answer: A. Expenses incurred in starting a business, goodwill, patents, trademarks, copy rights comes under expenses which cannot be placed any headings. Examples are things like copyrights, patents, intellectual property, or goodwill. It is an intangible asset but not a fictitious asset as it has resale value. Goodwill is an intangible but not fictitious assets which means it has some realisable value. Goodwill is intangible asset not a fictitious asset. False. ch_color_text = "#000000"; their benefits are carried forward in the years to come like advertisement expenditure. It does not have a tangible existence either. Net Assets = All Assets (other than goodwill, fictitious assets and non-trade investments) at their current values – Outsider’s Liabilities . Break-even indicates. Here, Net assets = All Assets less fictitious assets, existing goodwill… ch_color_site_link = "#0000CC"; B. ch_width = 200; ch_fluidH = 1; Solution: We hope the TS Grewal Accountancy Class 12 Solutions Chapter 2 Goodwill: Nature and Valuation help you. In conclusion, goodwill is not a fictitious asset, but it is an intangible asset. Submit. A) Revenues are more than cost. Goodwill = Capitalised Value – Net assets of business. (e) Assets of the firm (excluding goodwill, fictitious assets and not-trade investments) is ₹ 7,00,000 whereas Partners Capital is ₹ 6,00,000 and Outside Liabilities ₹ 1,00,000. Some consider Goodwill as a Fictitious Asset. Note that an asset can be tangible like  plant & machinery, land, and intangible goodwill but both assets are in fact necessary for the operation of a business. Is goodwill a fixed asset or ficti tious asset? Fictitious assets on the other hand, are the expenses or losses which are still to be charged from the profit and therefore, cannot be classified as tangible or intangible. Do you think this statement is correct.? NEED FOR VALUATION OF GOODWILL; Generally goodwill may be valued at the time of disposal of business … True. It cannot be touched and felt and therefore, goodwill is an intangible asset. (c) Goodwill is a wasting asset. Goodwill = Capitalized value – Net Assets. ch_nump = "4"; They are not recorded in the books of accounts. Free Online MCQs Questions for Class 11 Accountancy with Answers was Prepared Based on Latest Exam Pattern. This method requires the computation of future maintainable profits. 21 February 2011 INTANGIBLE ASSET is an asset that is not physical in nature. A fictitious asset does not have a realizable value as it is merely an expenditure incurred by the company. and we can not calculate exact value of goodwill. //-->. Fictitious assets on the other hand, are the expenses or losses which are still to be charged from the profit and therefore, cannot be classified as tangible or intangible.