The existence of "goodwill" on a corporate balance sheet indicates that the corporation has:

Question

Quizplus · Accepted Answer

Goodwill is an intangible asset that appears on the balance sheet when a company acquires another company for a price higher than the fair market value of its assets. This excess amount is considered goodwill and represents the value of intangible assets such as brand recognition, customer loyalty, or patents. Therefore, the existence of goodwill on a corporate balance sheet indicates that the corporation has intangible assets from past acquisitions.

The Existence of "Goodwill" on a Corporate Balance Sheet Indicates