WAEC Accounting 2019 Objective — Question 14
Question 14 of 50 from the West African Examinations Council (WAEC) Accounting 2019 Objective paper, with the correct answer and a full explanation.
Advertisement
Goodwill is recognized in partnership when
- A. the business makes a huge profit
- B. the business has adequate bank balance
- C. a partner is dormant
- D. a new partner is admittedCorrect
Explanation
When a new partner is introduced into the partnership business, asset of the business will be revalued; this results in the creation of goodwill.
Advertisement
Sign up free to unlock
- Score tracking
- Practice history
- Saved questions
- Progress dashboard
- Personalized sessions
- Weak-topic breakdown
…and/or go further with premium services and No Ads.