In the context of a balance sheet, goodwill represents
A) a premium paid over the book value for an acquisition.
B) the value attached to a firm's reputation.
C) the excess of assets over liabilities.
D) the value associated with benefits from environmental programs.
E) the excess of current assets over liabilities.

Question

Quizplus · Accepted Answer

Goodwill on a balance sheet represents the premium paid over the book value of a company's identifiable assets and liabilities during an acquisition. It reflects intangible assets like brand reputation and customer relationships.

In the Context of a Balance Sheet, Goodwill Represents