Question

What Is Goodwill?

Answer 1

Goodwill is an intangible asset that results in enhancing the valuation of the business. It causes the purchase price of the company to go up. Goodwill can be determined by subtracting the net fair market value of the assets and liabilities from the purchase price of the company.

Also read:

• MCQs on Goodwill
• What is Goodwill?
• Methods of Valuation of Goodwill

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