Question

Why Is Goodwill an Asset?

Answer 1

Goodwill is an intangible asset that increases the value of a business more than the value of its assets and liabilities.

Goodwill is regarded as a capital asset because it provides revenue generation which lasts for a long time (more than a year)

Also read:

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