Amount paid for acquiring goodwill is ........

Accountancy (Phase -I & II) Introduction to Accounting

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Amount paid for acquiring goodwill is __________.

revenue expenditure.

deferred revenue expenditure.

capital expenditure.

deferred capital expenditure.

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Explanation:

Goodwill is an intangible asset which represents non-physical items that add to a company's value but cannot be easily identified or valued. Goodwill will benefit to the business for many years. So, cost of acquiring goodwill (using the name of an old firm) is always a capital expenditure

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