Goodwill is:
A)Amortized over the greater of its estimated life or forty years.
B)Only recorded by the seller of a business.
C)The value of a business as a whole,over and above the value of its net identifiable assets.

Question

Quizplus · Accepted Answer

Goodwill is the value of a business as a whole, over and above the value of its net identifiable assets. It represents the intangible assets of a business that contribute to its brand recognition, customer loyalty, and other non-physical factors that contribute to its overall value. Goodwill is recognized and recorded by the acquirer of a business in a business combination. Goodwill is not amortized but instead, tested for impairment at least annually or whenever there is an indication that it may be impaired.

Goodwill Is