Question

Complete the following sentence.

______ is also one of the special aspects of partnership accounts which requires adjustment (also valuation if not specified) at the time of reconstitution of a firm).

Options

• Reputation

• Goodwill

• Kindness

• None of the above

Answer 1

Goodwill is also one of the special aspects of partnership accounts which requires adjustment (also valuation if not specified) at the time of reconstitution of a firm).

Explanation:

Changes in the profit-sharing ratio, the admission of a partner, or the retirement or death of a partner are all examples of special characteristics of partnership accounting that require adjustment (or valuation if not specified) at the time of reconstitution of a firm.