Goodwill can only be recorded at the purchase of a business.

Name: Goodwill can only be recorded at the purchase of a business.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Goodwill is recognized in accounting when a company acquires another business for more than the fair value of its net identifiable assets. It represents intangible assets like brand reputation, customer relationships, and intellectual property that are not individually identified and separately recognized.

Goodwill Can Only Be Recorded at the Purchase of a Business