In a business combination,goodwill is defined as the excess of cost over the
A) net book value of assets acquired.
B) fair value of assets acquired.
C) book value of assets acquired less the liabilities assumed.
D) fair value of assets acquired less the liabilities assumed.

Question

Quizplus · Accepted Answer

Goodwill is the excess of the cost of a business combination over the fair value of assets acquired less the liabilities assumed. This represents the value of intangible assets such as brand recognition, customer relationships, and intellectual property that are not separately identifiable and cannot be valued independently of the business as a whole.

In a Business Combination,goodwill Is Defined as the Excess of Cost