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JAMB Principles of Accounts 1998 Question 36

Question 36

Company Accounts

Which of the following is an intangible asset and a measure of a firm's supperior earning power?

  1. A.Patent
  2. B.Goodwill
  3. C.Trademark
  4. D.Right issue.
Show the answer and explanation

Answer: B (Goodwill)

Explanation

Goodwill is the value of a firm's ability to earn more than normal profits.