Accounting for AQA: Part 2: Chapter 5

Question 1

Goodwill is a tangible non-current asset.

True

False

Question 2

The formal definition of goodwill is 'the difference between the value of a business as a whole, and the net value of its separate assets and liabilities'.

True

False

Question 3

When goodwill is created on a change in the partnership, the partners' capital accounts are debited in the old profit or loss sharing ratio.

True

False

Question 4

On retirement of a partner, assets of the partnership are often revalued.

True

False

Question 5

When an asset is revalued upwards, the asset account is debited with the amount of the increase.

True

False

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Accounting for AQA: Part 2: Chapter 5

Page 1 of 2 - There are 10 questions in total.

Question 1 Introduction

Question 1

Goodwill is a tangible non-current asset.

Question 2

The formal definition of goodwill is 'the difference between the value of a business as a whole, and the net value of its separate assets and liabilities'.

Question 3

When goodwill is created on a change in the partnership, the partners' capital accounts are debited in the old profit or loss sharing ratio.

Question 4

On retirement of a partner, assets of the partnership are often revalued.

Question 5

When an asset is revalued upwards, the asset account is debited with the amount of the increase.

AAT Q2022 Books

Accounting for AQA: Part 2: Chapter 5

Page 1 of 2 - There are 10 questions in total.

Question 1 Introduction

Question 1

Goodwill is a tangible non-current asset.

Question 2

The formal definition of goodwill is 'the difference between the value of a business as a whole, and the net value of its separate assets and liabilities'.

Question 3

When goodwill is created on a change in the partnership, the partners' capital accounts are debited in the old profit or loss sharing ratio.

Question 4

On retirement of a partner, assets of the partnership are often revalued.

Question 5

When an asset is revalued upwards, the asset account is debited with the amount of the increase.