Businesses are allowed to record goodwill:

Question

Quizplus · Accepted Answer

Goodwill is the amount paid for an acquisition over its net asset value. It is recorded when a company acquires another company at a price higher than the market value of its net assets. Option A is about brand value, which is a subset of goodwill. Option C refers to continuity of business, which is not relevant to the concept of goodwill. Option D is about market value, but goodwill is specifically about the premium paid for an acquisition.

Businesses Are Allowed to Record Goodwill