Lesson eLearning

Under Schedule III of the Companies Act, 2013, goodwill is shown in the balance sheet under which head?

easy MCQ 1 mark Class 12 · Accountancy · Goodwill Nature and Valuation
  1. Current assets
  2. Non‑current assets
  3. Equity
  4. Liabilities
Answer
Non‑current assets

The correct answer is Non‑current assets — Select the correct head: Non‑current assets.

Step-by-step solution

  1. Consult Schedule III of the Companies Act, 2013.
  2. Identify the classification of goodwill as a non‑current asset.
  3. Select the correct head: Non‑current assets.
Common mistake: Considering goodwill as equity

Concept tested: Classification of goodwill

Published · How this solution was prepared and checked

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