Which of the following statements concerning internally developed goodwill is true?
A) It is a separately identifiable asset.
B) It is capitalized at its cost.
C) The costs associated with its development are expensed as incurred.
D) Measuring its value is relatively easy and faithfully represented.

Question

Quizplus · Accepted Answer

Internally developed goodwill is not recognized as an asset on the balance sheet because it is not a separately identifiable asset or something that can be sold or purchased separately. The costs associated with developing goodwill, such as marketing or research costs, are expensed as incurred rather than capitalized.

Which of the Following Statements Concerning Internally Developed Goodwill Is