Goodwill is the excess of purchase price of the acquired enterprise over
A)fair value of the tangible net assets acquired.
B)book value of the identifiable net assets acquired.
C)book value of the tangible net assets acquired.
D)fair value of the identifiable net assets acquired.

Question

Quizplus · Accepted Answer

Goodwill is the excess of the purchase price of the acquired enterprise over the fair value of the identifiable net assets acquired. Goodwill represents intangible assets such as customer relationships, brand recognition, and employee skills that are not separately identifiable or quantifiable.

Goodwill Is the Excess of Purchase Price of the Acquired