Goodwill
A) is always expensed upon purchase.
B) can be sold by itself to another company.
C) can be purchased and charged directly to shareholders' equity.
D) is the excess of cost paid to acquire a business over the fair value of the net identifiable assets of the business.

Question

Quizplus · Accepted Answer

Goodwill is an intangible asset that arises when a company acquires another business for more than the fair value of its net identifiable assets.