Which statement is not correct?
A)Goodwill equals the purchase price less the fair value of net assets acquired.
B)Intangible assets can be purchased or internally created.
C)Economic goodwill equals accounting goodwill and can be created by branding.
D)Intangible assets are identifiable assets without physical substance.

Question

Quizplus · Accepted Answer

Economic goodwill is not the same as accounting goodwill. Accounting goodwill is the amount paid for an acquisition that exceeds the fair value of the net assets acquired, while economic goodwill refers to the value of a company's brand and reputation beyond its tangible assets. While branding can contribute to economic goodwill, it is not the only factor.

Which Statement Is Not Correct