Goodwill
A)generated internally should not be capitalized unless it is measured by an individual independent of the enterprise involved.
B)is easily computed by assigning a value to the individual attributes that comprise its existence.
C)represents a unique asset in that its value can be identified only with the business as a whole.
D)exists in any company that has earnings that differ from those of a competitor.

Question

Quizplus · Accepted Answer

Goodwill represents the value of a company as a whole, which includes its reputation, customer base, and other intangible assets that are not easily separable from the business. It cannot be computed by assigning values to individual attributes. It is also not generated internally but rather acquired through a business combination or merger. Goodwill should be capitalized and reported on the balance sheet if it is identified as a separate asset with a finite life.