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    Question

    How is self-generated goodwill recognized in

    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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