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What is goodwill?

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2014-01-21 13:35:29
2014-01-21 13:35:29

When a business has provided good service or product to their customers, the customers develop a trust for the business. They become repeat customers and they tell others what a good experience they had. That creates a business asset called goodwill, in other words the good will of the customers toward the business.

Answer 2The goodwill of a business is the whole advantage of the reputation and connection with customers together with the circumstances whether of habit or otherwise, which tend to make that connection permanent. It represents in connection with any business or business product the value of the attraction to the customers which the name and reputation possesses. Its elements can be market penetration, brand awareness, customer loyalty, size and quality of customer list, longevity in the marketplace, proprietary products, intellectual property, etc. Answer 3
  • Goodwill is a value of the attractive force that generates sales revenue in a business, and adds value to its assets.

  • Goodwill is an intangible but salable asset, almost indestructible except by indiscretion.

  • It is built painstakingly over the years generally with:

    • heavy and continuous expenditure in promotion,

    • creation and maintenance of durable customer and supplier relationships,

    • high quality of goods and services, and

    • high quality and conduct of management and employees.

  • Goodwill includes the worth of corporate identity, and is enhanced by corporate image and a proper location.

  • Its value is not recognized in account books but is realized when the business is sold, and is reflected in the firm's selling price

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Related Questions

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No; goodwill can not be depreciated because goodwill is not considered to have a useful life.

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speech to secure goodwill

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You cannot sell goodwill, at least in accounting. Goodwill is the amount that you overpaid. You can sell an asset at a high price but you cannot sell directly the goodwill.

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Debit amortization of goodwillCredit goodwill account

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goodwill is not a liability. goodwill is an intangible item that is shown in the balnce sheet in the fixed assets sextion

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Inherent Goodwill is unrecognized goodwill because the business is not acquired so it is inherently apart of the business. When the business is acquired goodwill is affixed an amount at its fair value.

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There are no problems with goodwill all you do is donate stuff.

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It dependents on which Goodwill store.

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Goodwill Theatre was created in 1920.

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Goodwill Bridge was created in 2001.

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No. The final Winter Goodwill Games were in 2000 and the final Summer Goodwill Games were in 2001.

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Goodwill will be debited in the journal. The charge of goodwill can be calculated by subtracting purchase price from total assets required.

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Internally generated goodwill is never capitalized, purchased goodwill is capatalized on the consoilidated balance sheet.

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According to the FASB, goodwill is defined as an asset.

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Goodwill DR, Cash / Bank CR

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how to apply a job at palmetto Goodwill

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Goodwill is as you wrote it... one word.

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goodwill is calculated by dividing 5 years profit average profit is multiplied by 2 and that is yhe goodwill

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The architect of Brisbane's Goodwill Bridge is Cox Rayner.

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You can no longer amortize goodwill. Instead you annually test it for impairment.

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I bought one at goodwill for 10$

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The Latin noun meaning goodwill is benevolentia or gratia.

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No, Goodwill and Walmart are two different companies.

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Jasper Goodwill was born on 1889-11-18.


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