[Solved] Which of the following statements is true? 1. If the amount of good will increases during current year, the difference is treated as purchase of goodwill. 2. If the amount of good will decreases during current year, It will treated as written off.

Q.	Which of the following statements is true? 1. If the amount of good will increases during current year, the difference is treated as purchase of goodwill. 2. If the amount of good will decreases during current year, It will treated as written off.
A.	Only 1
B.	Only 2
C.	Both 1 and 2
D.	None of the above
Answer» C. Both 1 and 2

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Advanced Financial Management 2

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