Answered: Goodwill is an example of: a) A…

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Accounting

Goodwill is an example of: a) A tangible asset b) A liability c) An intangible asset d) Owner's Equity

Auditing: A Risk Based-Approach to Conducting a Quality Audit

10th Edition

ISBN:9781305080577

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter16: Advanced Topics Concerning Complex Auditing Judgments

Section: Chapter Questions

Problem 7TFQ

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Question

Goodwill is example of: _____?

Goodwill is an example of:
a) A tangible asset
b) A liability
c) An intangible asset
d) Owner's Equity

Definition Definition Intangible asset that includes proprietary or intellectual property and brand value of a firm. Goodwill is recorded in the books when a firm purchases another firm and the purchase price is more than the fair value of net identifiable assets of the acquired business. The amount of goodwill is recorded on the asset side of the balance sheet (statement of financial position).

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