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What is the main reason for avoiding showing goodwill account in books?

Answer and explanation

Correct answer: Goodwill may be only an internal adjustment

Often goodwill is not actually purchased so it is adjusted directly in capital accounts. Do not confuse it with cash payment.

Related tags

Goodwill-SettlementConceptAccountancyGoodwill SettlementReconstitution Retirement Or Death Of A PartnerClass 12 Mcq

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