1 What is goodwill Ans : good will is an asset that capture expenses of the faire market value acquired business

Question

Accepted Answer

Goodwill is an intangible asset that represents the excess of the purchase price of a company over the fair market value of its net assets.

Goodwill is recorded on the balance sheet when a company acquires another company for a price higher than the fair market value of its net assets.
It represents the reputation, brand value, customer relationships, and other intangible assets of the acquired company.
Goodwill is not amortized but is subject to impairment testing annually.
If the fair market value of the acquired company's net assets is higher than the purchase price, negative goodwill is recorded.
Goodwill can be created through mergers, acquisitions, or investments in subsidiaries.

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