Goodwill is classified in the balance sheet as:
A) equity.
B) a current asset.
C) a non-current asset.
D) a liability.

Question

Quizplus · Accepted Answer

Goodwill is considered a non-current asset because it represents the excess cost paid for an acquisition over the fair value of the net assets acquired. Goodwill has an indefinite useful life and is not subject to amortization, but is subject to annual impairment tests.

Goodwill Is Classified in the Balance Sheet As