WAEC Financial Accounting 2011 Question 5

Question 5

Depreciation

The reduction in value of goodwill is

  1. A.amortization
  2. B.appreciation
  3. C.depletion
  4. D.depreciation
Show the answer and explanation

Answer: A (amortization)

Explanation

Goodwill is an intangible asset; writing it off over time is amortisation.