In accounting terms,what is goodwill?
A)the actions a company takes to foster the development of social responsibility
B)the charitable contributions made by a company
C)the excess of the cost of an acquired company over the sum of the fair market values of its identifiable assets less its liabilities
D)the excess of the cost of an acquired company over the sum of the fair market value of its identifiable assets

Question

Quizplus · Accepted Answer

Goodwill refers to the intangible value of a company that is not attributable to any specific asset or liability. In accounting terms, goodwill is the excess of the cost of an acquired company over the sum of the fair market values of its identifiable assets less its liabilities. It represents the value of the company's brand, reputation, customer relationships, and other factors that contribute to its earning power.

In Accounting Terms,what Is Goodwill