Goodwill is an Intangible Asset

By BYJU'S Exam Prep

Updated on: September 25th, 2023

Goodwill is an intangible asset that pertains to the purchase of a company by another company. It accounts for the excess purchase price of another company. Intangible asset is not physical in nature.

Answer: Goodwill is an intangible asset that is linked with the acquisition of one company by another.

To determine Goodwill, subtract the purchase price of a company from the net fair market value of identifiable assets and liabilities. It is considered an intangible asset on the balance sheet of acquiring company under the long-term asset account. If the acquiring company purchases the company at a bargain then it is referred to as negative goodwill. The value of goodwill can be checked by the companies on their financial statement.


Goodwill is an Intangible Asset

Goodwill is an intangible asset that is related to the buying of a company by another. It includes brand recognition and intellectual property

PO, Clerk, SO, Insurance

Our Apps Playstore
SSC and Bank
Other Exams
GradeStack Learning Pvt. Ltd.Windsor IT Park, Tower - A, 2nd Floor, Sector 125, Noida, Uttar Pradesh 201303
Home Practice Test Series Premium