Stellas Confectionery has systematically cultivated good customer relationships both by showing courtesy and by sending Christmas gifts.

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Stella’s Confectionery has systematically cultivated good customer relationships both by showing courtesy and by sending Christmas gifts. She feels that the goodwill she has built up is worth £100,000. Which accounting concept prevents her from reporting goodwill as an asset in her Statement of financial position?

(a) Prudence

(b) Money measurement

(c) Separate entity

(d) Going concern

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Financial Accounting An Introduction

ISBN: 9780273737650

2nd Edition

Authors: Mr Barry Elliott, Mr Augustine Benedict

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