Multiple choice

Directions: Choose the correct option for the given question.

'Goodwill' will be shown in the balance sheet of a company under

  1. Fixed Assets

  2. Fictitious Assets

  3. Loans and advances

  4. None of these
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A Correct answer
Explanation

Goodwill is an intangible fixed asset representing the reputation, brand value, and customer loyalty of a business. In company balance sheets, goodwill is classified under Fixed Assets (specifically as Intangible Assets). It's not fictitious (fictitious assets are deferred revenue expenditures like preliminary expenses written off over time).

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