A friend has come to you with the following question, "What is this goodwill account that I see on the statement of financial position of a company that I own stock in?"
Instructions
Write a reply to your friend. Include in your explanation three factors that contribute to goodwill, under what circumstances goodwill is recorded, and how it is accounted for.

Question

Quizplus · Accepted Answer

The Answer of A friend has come to you with the following question, "What is this goodwill account that I see on the statement of financial position of a company that I own stock in?"
Instructions
Write a reply to your friend. Include in your explanation three factors that contribute to goodwill, under what circumstances goodwill is recorded, and how it is accounted for.

A Friend Has Come to You with the Following Question