What is the accounting term that describes an amount paid for an existing business above the value of its other assets?
A) A patent
B) A copyright
C) Goodwill
D) A franchise fee
E) Reputation

Question

Quizplus · Accepted Answer

The accounting term that describes an amount paid for an existing business above the value of its other assets is called goodwill. It represents the value of the business's reputation, customer base, brand name, and other intangible assets. Goodwill is recorded on the balance sheet as an intangible asset and can arise from an acquisition, merger, or other business combination.

What Is the Accounting Term That Describes an Amount Paid