Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Financial Statements of a Company

Question:
Which of the following assets is not shown under the head ‘Fixed Asset’ in the Balance Sheet of a company?
Options:
Computer
Goodwill
Buildings
Vehicle
Correct Answer:
Goodwill
Explanation:
Goodwill is an intangible asset that accounts for the excess purchase price of another company. Items included in goodwill are proprietary or intellectual property and brand recognition, which are not easily quantifiable.