In accounting, goodwill

A. Is never recorded.

B. May be recorded when a company's level of net income exceeds the industry average.

C. Must be expensed in the period when it is acquired.

D. May be recorded when the company purchases another business.

Question

Virginia Henry

Business

14 November, 10:46

In accounting, goodwill

A. Is never recorded.

B. May be recorded when a company's level of net income exceeds the industry average.

C. Must be expensed in the period when it is acquired.

D. May be recorded when the company purchases another business.

+5

Answers (1)

Know the Answer?

Gunnar Butler · Answer 1

D. May be recorded when the company purchases another business.

Explanation:

Goodwill is the amount in excess of the purchase price of a company acquired less all the liabilities and assets of the company purchased.

It is recorded on the balance sheet as an intangible asset.

In accounting, goodwillA. Is never recorded.B. May be recorded when a company's level of net income exceeds the industry average.C. Must be expensed in the period when it is acquired.D. May be recorded when the company purchases another business.

In accounting, goodwill

A. Is never recorded.

B. May be recorded when a company's level of net income exceeds the industry average.

C. Must be expensed in the period when it is acquired.

D. May be recorded when the company purchases another business.