Goodwill can be recorded
A) when customers keep returning because they are satisfied with the company's products.
B) when the company acquires a good location for its business.
C) when the company has exceptional management.
D) only when an entire business is purchased.

Question

Quizplus · Accepted Answer

Goodwill is an intangible asset that is recognized in accounting only when an entire business is purchased, and it represents the excess of the purchase price over the fair value of the identifiable net assets of the acquired business.

Goodwill Can Be Recorded