Fictitious assets have no tangible or physical existence and any realisable value, but they always represent actual cash expenditure, that is charged from the profit.
Whereas, goodwill is not an expense and it takes time to build. It cannot be touched or felt, that’s why it is intangible in nature, but goodwill has a realisable value.
That is why goodwill is not considered as a fictitious asset.
- Methods of Valuation of Goodwill
- Why Do We Debit Goodwill Account While Distributing It Amongst Old Partners
- Treatment of Goodwill
- MCQs on Goodwill
- Intangible Assets
Stay connected with BYJU’S for more such questions and answers on various commerce topics.