Goodwill is recognized only when the purchase price of a company is greater than the fair value of the assets less the liabilities of that company.

Name: Goodwill is recognized only when the purchase price of a company is greater than the fair value of the assets less the liabilities of that company.
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Question

Quizplus · Accepted Answer

Goodwill is an intangible asset that arises when a company is purchased for more than the fair value of its net identifiable assets (assets minus liabilities).

Goodwill Is Recognized Only When the Purchase Price of a Company