Target Exam

CUET

Subject

-- Accountancy Part A

Chapter

Admission of a Partner

Question:

____ is the value of the reputation of a firm in respect of the profits expected in future over and above the normal profits.

Options:

Goodwill

Patent

Copyright

Capital

Correct Answer:

Goodwill

Explanation:

The correct answer is Option (1) → Goodwill

Goodwill represents the value of a firm’s reputation and its ability to earn profits in the future over and above normal profits.,It arises from factors like good management, loyal customers, quality products, and a strong market position