Question

Is Goodwill an Expense or Income?

Answer 1

Goodwill is treated as an impairment expense and it reduces the net income of the business.

Also read:

• Methods of Valuation of Goodwill
• Why Do We Debit Goodwill Account While Distributing It Amongst Old Partners
• Treatment of Goodwill
• MCQs on Goodwill
• Intangible Assets

Stay connected with BYJU’S for more such questions and answers on various commerce topics.