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 there is a purchase of an entire business.

Question

Quizplus · Accepted Answer

Goodwill is an intangible asset that can only be recorded on the balance sheet when a company acquires another business for more than the fair value of its net identifiable assets.

Goodwill Can Be Recorded