Which of the following statements is true?
1) If the amount of good will increases during current year, the difference is treated as purchase of goodwill.
2) If the amount of good will decreases during current year, It will treated as written off.

Question

Quizplus · Accepted Answer

Both statements are true regarding the treatment of goodwill in accounting. When the amount of goodwill increases, it is often treated as a purchase of goodwill, indicating an investment in the intangible asset. Conversely, if the amount of goodwill decreases, it is typically treated as being written off, reflecting a reduction in the asset's value.

Which of the Following Statements Is True