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Commerce · Q164

Accounting

Graduate and Post Graduate · Commerce · question 164

Q164

Goodwill is classified as which one of the following assets?

A.
Fixed
B.
Long term
C.
Current
D.
Intangible
Answer

Answer: Option D

Solution

Answer: Option D
Solution:
Goodwill is classified as Intangible assets. The goodwill amounts to the excess of the "purchase consideration" (the money paid to purchase the asset or business) over the total value of the assets and liabilities. It is classified as an intangible asset on the balance sheet, since it can neither be seen nor touched.