Question

Which of the following is incorrect?

a) Good will intangible asset

b) Sundry debtors - current asset

c) Loose tools tangible fixed asset

d) Outstanding expenses -current asset​

Answer 1

D is incorrect. Outstanding expenses are current liabilities.

Answer 2

Outstanding expenses are current asset this statement is incorrect.

Goodwill is intangible asset. This statement is correct as goodwill is intangible asset which is purchased by one company from another.

Sundry Debtors are current asset . this statement is correct as debtors are those who owns our amount and will pay their amount in future.

Loose Tools  are tangible fixed asset . this statement is correct as they are asset of the balance sheet and is shown in the credit side of the balance sheet.

Outstanding Expenses are current asset. this statement is incorrect as expenses are liability not asset which we have to pay in near future.