QQuestionAccounting
QuestionAccounting
"Goodwill is an example of a:
Question 10Answer
a. Current asset
b. Long-term liability
c. Current liability
d. Intangible long-term asset"
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Answer
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Step 1: Identify the type of asset described in the question.
Goodwill is an asset that is acquired during a business combination and represents the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. It is an intangible asset because it lacks physical substance.
Step 2: Identify the correct answer choice.
Based on the definition provided in Step 1, Goodwill is an example of an intangible long-term asset. Therefore, the correct answer is: d. Intangible long-term asset.
Final Answer
Intangible long-term asset.
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