How is self-generated goodwill recognized in

Q: Answer-How is self-generated goodwill recognized in accounting?

Explanation Self-generated goodwill is recognized in accounting as an intangible asset in the balance sheet. The value of this asset is based on the companys own estimates of its value, and it is subject to periodic impairment tests.

accounting?

A It is recorded as an expense in the income statement Correct Answer Incorrect Answer

B It is recorded as a liability in the balance sheet Correct Answer Incorrect Answer

C It is not recognized in accounting Correct Answer Incorrect Answer

D It is recorded as an intangible asset in the balance sheet Correct Answer Incorrect Answer

Solution

Explanation: Self-generated goodwill is recognized in accounting as an intangible asset in the balance sheet. The value of this asset is based on the company's own estimates of its value, and it is subject to periodic impairment tests.

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UPSC EPFO (APFC)

UPSC

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