If a company reports goodwill as an intangible asset on its books, what is the one thing you know with certainty? The company is a valuable company worth investing in. The company purchased another company. The goodwill will generate a lot of positive business for the company for many years to come. The company has a well-established brand name.

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19 April, 05:06

If a company reports goodwill as an intangible asset on its books, what is the one thing you know with certainty? The company is a valuable company worth investing in. The company purchased another company. The goodwill will generate a lot of positive business for the company for many years to come. The company has a well-established brand name.

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Kristina Dyer · Answer 1

The company purchased another company.

Explanation:

Goodwill is an intangible asset which is basically associated with the action of one company buying another company. This purchase price is fared higher than the net value of assets and liabilities that are assumed to be part of the entire process.

Some examples of goodwill would be the brand name, the technology associated with the products, solid customer base, employee relations and loyalties, business relations and etc.