A-LevelAccountingIntangible AssetsMay/June 2011Paper 1 Q71 Mark
How should goodwill be treated by a limited company?
AGoodwill should always be written off immediately.
BNon-purchased goodwill is shown in the balance sheet.
CPurchased goodwill is shown in the balance sheet and written off over its useful life.
DPurchased goodwill remains on the balance sheet as a permanent item.
✓ Correct Answer
The correct answer is C. This question tests the candidate's understanding of intangible assets within the Accountingsyllabus. The examiner's mark scheme requires...
📋 Examiner Report & Trap Analysis
Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...
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