Asked by Elyssa Arcibal on Jun 26, 2024
Verified
Goodwill
A) can be recorded when generated internally.
B) can be subdivided and sold in parts.
C) can only be identified with the business as a whole.
D) need not be tested annually for impairment.
Goodwill
An intangible asset that arises when a business is acquired for more than the fair value of its net identifiable assets, representing the company's reputation, brand, or similar factors.
Internally Generated
Refers to assets, revenues, or values created through the operations and activities of the company, not through external acquisition.
- Understand the essence and financial handling of goodwill.
Verified Answer
VL
Vivian LuongJun 30, 2024
Final Answer :
C
Explanation :
Goodwill can only be identified with the business as a whole and not as a separate asset. It represents the value of a company's brand name, customer base, employee relations, patents, and proprietary technology. Unlike physical assets, goodwill cannot be sold separately from the business itself.
Learning Objectives
- Understand the essence and financial handling of goodwill.
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