O-LevelAccountingAccounting principles and policies7707/12 · May/June 2012 · Q211 Mark

When might goodwill appear in a balance sheet?

Awhen a trader plans to retire and close his business

Bwhen it has been purchased

Cwhen the market value of non-current assets is higher than net book value

Dwhen the workforce is highly skilled

✓ Correct answer

B: when it has been purchased

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Topic: Accounting principles and policies, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source: O-Level Accounting, May/June 2012 Paper 1 Variant 2, question 21.

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