Goodwill is the excess of the purchase price over the fair market value of the acquired company's tangible assets, identifiable intangible assets, and liabilities.

Question

Quizplus · Accepted Answer

This statement is true. Goodwill represents the value of a business's reputation, customer relationships, and other intangible assets that cannot be separately identified and valued. It is calculated as the purchase price minus the fair market value of the company's identifiable tangible and intangible assets and liabilities.

Goodwill Is the Excess of the Purchase Price Over the Fair