Goodwill: Meaning - SS2 Accounting Past Questions and Answers - page 1

The value of a business's tangible assets

The value of a business's liabilities

The intangible value of a business that is not attributable to its assets, liabilities, or earnings

The value of a business's earnings

When a business is sold for a price that is equal to the value of its net tangible assets

When a business is sold for a price that is lower than the value of its net tangible assets

When a business is sold for a price that is higher than the value of its net tangible assets

When a business does not have any tangible assets

As a liability

As an expense

As a revenue

As an asset

It has no impact on the financial statements

It is recorded as an expense on the income statement

Impairment charges are recognized on the income statement

The value of Goodwill on the balance sheet increases