Asked by diksha pathria on Jun 16, 2024
Verified
The specific meaning of goodwill in accounting is:
A) The amount by which a company's value exceeds the value of its individual assets and liabilities.
B) Long term assets held as investment.
C) The support of the board of directors for the operating decisions of management.
D) The cost of developing,maintaining,or enhancing the value of a trademark.
E) Rights granted an entity to deliver a product or service under specified conditions.
Goodwill
An intangible asset that arises when a business is acquired for more than the fair value of its net identifiable assets, reflecting the company's reputation, customer relations, and other non-physical assets.
Assets And Liabilities
Elements of a company's financial statements where assets represent resources owned, and liabilities represent obligations owed to others.
- Understand the concept of goodwill in accounting and how it is measured.
Verified Answer
IA
Izzah AthirahJun 16, 2024
Final Answer :
A
Explanation :
Goodwill in accounting refers to the intangible asset that arises when a company acquires another company for a price higher than the fair value of its net identifiable assets and liabilities. It represents elements of value that are not separately identifiable, such as brand reputation, customer relationships, and intellectual property that do not qualify as identifiable assets.
Learning Objectives
- Understand the concept of goodwill in accounting and how it is measured.
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