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A2 Level - Partnership Goodwill and Dissolution

Authored by Suraya Studies

Business

12th Grade

Used 1+ times

A2 Level - Partnership Goodwill and Dissolution
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30 questions

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1.

MULTIPLE CHOICE QUESTION

20 sec • 1 pt

What is inherent goodwill?

Goodwill that is purchased during acquisition

Goodwill generated internally through business reputation

Goodwill recorded in financial statements

Goodwill arising from revaluation

2.

MULTIPLE CHOICE QUESTION

20 sec • 1 pt

Purchased goodwill is recorded in the books when:

The business experiences high customer loyalty

The firm is revalued internally

The firm pays to acquire goodwill from another firm

Partners change their profit-sharing ratio

3.

MULTIPLE CHOICE QUESTION

20 sec • 1 pt

Goodwill is NOT recorded when:

A business is sold

Partners agree to value goodwill

Goodwill is inherent

A partner retires and goodwill is valued

4.

MULTIPLE CHOICE QUESTION

20 sec • 1 pt

When goodwill is raised and not to be retained in the books, the accounting treatment is to:

Debit Goodwill and leave it in the books

Credit Goodwill and transfer to capital accounts

Raise Goodwill and immediately write it off

Ignore the goodwill entry

5.

MULTIPLE CHOICE QUESTION

20 sec • 1 pt

Goodwill is shared between partners:

According to their capital contributions

Equally

In the profit-sharing ratio

Based on agreement with creditors

6.

MULTIPLE SELECT QUESTION

20 sec • 1 pt

When a new partner is admitted, goodwill is typically (2 answers):

Ignored

Raised and written off

Paid by the new partner to old partners

Transferred to the revaluation account

7.

MULTIPLE CHOICE QUESTION

20 sec • 1 pt

On change of profit-sharing ratio, goodwill compensation is given by:

Gaining partner to the sacrificing partner

Sacrificing partner to the gaining partner

All partners equally

Only to the retiring partner

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