12th Class Accountancy Goodwill Question Bank Assertion and Reason - Goodwill : Nature And Valuation

  • question_answer
    Assertion [A] :
    Better quality of product/service and after sale services. Good customer relations will lead to customer satisfaction, which will increase the sales and profits.
    Reason [R] :
    Higher Profits will lead to higher value of goodwill of the enterprise.
    Choose the Correct Option from the following:
     

    A) Assertion and Reason both are correct if viewed together in context of goodwill.

    B) Assertion and Reason both are correct but Reason is not correct explanation of assertion

    C) Both Assertion and Reason are not correct

    D) Only Assertion is correct

    Correct Answer: A

    Solution :

    Abortion and Reason both are correct if viewed together in context of goodwill.


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