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Class 12 Accountancy Partnership Accounts - Basic Concepts GoodwillEasy

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Which statement is correct for goodwill?

Answer and explanation

Correct answer: It is the value of firm's extra earning capacity

Goodwill is the value of the firm's extra earning capacity. In exams remember it as an intangible asset linked with reputation.

Related tags

Goodwill Summary Core Concept Partnership Accounts Basic Concepts Accountancy Class 12 Mcq

सुधार सुझाएँ / Earn

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