0
On the assets side.
Goodwill = (Liabilities + equity or capital) - Assets.
Goodwill is an intangible asset. As per Wikipedia, it is the intangible but quantifiable "prudent value" of an ongoing business beyond its assets. Goodwill could correspond to the estimated financial value of brand name, intellectual property, trademark, etc. Goodwill does not serve much purpose if a company is closed down. In the absence of Goodwill, the above equation reduces to the traditional accounting equation:
A = L + C.
Wiki User
∙ 11y ago
Add your answer:
Earn +20 pts
Compound words with good in them?
goodwillgoodbyefeelgood
How do you capitalize goodwill?
At the beginning of a sentence and when it forms part of the proper noun. Example: Goodwill Bazaar
What is the opposite of goodwill?
apathy
Importance of goodwill?
The main importance of having goodwill is that it makes yourself and other feels better and you will get along with other people better. Goodwill means having a positive attitude and being friendly or helpful.
How is goodwill generated?
As customers are satisfied with the service, products or prices of the particular vendor, they tend to return to the same vendor for the same service. "Goodwill" is in essence the same as "commercial reputation."
How do debits and credits affect the accounting equation?
The debits in the accounting equation increase the amount that appears on the left side. The credits in the accounting equation do the opposite and increase any amount that appears on the right side.
What is Dr and Cr stnd for?
In accounting Dr stands for Debit Cr stands for credit the terms literally mean Debit (left side of the accounting equation) Credit (right side of the accounting equation)
What must be done if a transaction increases the left side of the accounting equation?
Correct the transaction so that the double entry also increases the right hand side of the accounting equation so that the equation (always) balances.
In the field of accounting what does the term FASB goodwill refer to?
In the field of accounting the Finical Accounting Standards Board (FASB) provides guidance on how to deal with goodwill and how to account for it on finical statements. When done properly goodwill can provide tax relief for a company.
How do you sell goodwill?
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.
What does the Accounting Equation in accounting?
The Accounting Equation is Assets=Liabilities + Owner's Equity?
What does the concept of goodwill accounting involve?
The concept of goodwill accounting involves paying for an intangible service instead of tangible ones. An example of this is paying for a company's good reputation.
Can a business enter into a transaction in which only the left side of a basic accounting equation is affected?
yes ,business can enter into a transaction in which only the left side of the basic equation is affected
Can a business enter into a transaction in which only the left side of the basic accounting equation is affected?
yes ,business can enter into a transaction in which only the left side of the basic equation is affected
What has the author Leslie G Campbell written?
Leslie G. Campbell has written: 'Accounting for goodwill' -- subject(s): Goodwill (in business, etc.), Accounting 'International auditing' -- subject(s): Auditing, Standards
What is the role of accounting equation in the study of accounting equation?
you did the mathh wrong and must re-do it
Example of accounting equation?
The accounting equation is as follows: Assets = Liabilities + Stockholder's Equity
