Only _________________goodwill should be recorded in the balance sheet.
A) customer.
B) internally generated.
C) purchased.
D) current.

Question

Quizplus · Accepted Answer

Purchased goodwill is the only type of goodwill that should be recorded in the balance sheet. This occurs when a business is acquired for more than the fair value of its net assets, reflecting the value of the business's reputation, brand, and other intangible assets. Internally generated goodwill, such as the value created from a company's brand reputation or customer relationships developed over time, is not recorded as an asset in financial statements due to the difficulty in reliably measuring its value.

Only _________________Goodwill Should Be Recorded in the Balance Sheet