Which intangible asset is recorded only when an acquiring company purchases another company?
A)Franchise
B)Goodwill
C)Brand name
D)Trademark

Question

Quizplus · Accepted Answer

Goodwill is an intangible asset that represents the excess of the purchase price over the fair market value of the net assets acquired in a business combination. It is recorded only when an acquiring company purchases another company. Franchise, brand name, and trademark may also be intangible assets, but they can be internally developed by a company and do not necessarily require an acquisition to be recorded.

Which Intangible Asset Is Recorded Only When an Acquiring Company