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Financial Accounting

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What is Goodwill: When Does It Show on the Balance Sheet?

FINACT-WHGIYA

What is "Goodwill" reported on a balance sheet, and how does it get there?

Select ALL that are true about Goodwill.

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Goodwill is the result of paying more for another business than the sum of the fair values of their identified assets. Goodwill is not recognized in accounting unless it is acquired by buying another business. Goodwill is recorded as an intangible asset with an indefinite life. Goodwill, if it exists, is never recorded or amortized. Goodwill is the result of paying more for another business than the sum of the book values of their identified assets. Goodwill is amortized over its useful life, using the straightline method.