[amp_mcq option1=”Fixed” option2=”Long term” option3=”Current” option4=”Intangible” correct=”option4″]
The correct answer is: D. Intangible.
Goodwill is an intangible asset that arises when a company acquires another company for more than the fair value of its net assets. It is often referred to as the “goodwill premium” or the “excess purchase price.” Goodwill is recorded on the balance sheet as an asset, but it is not amortized over time. Instead, it is tested for impairment annually.
Goodwill is classified as an intangible asset because it is not a physical asset. It is an asset that arises from the value of a company’s brand, reputation, customer relationships, and other intangible factors.
Fixed assets are tangible assets that are used in the production of goods or services and are expected to be used for more than one year. Long-term assets are assets that are not expected to be converted into cash within one year. Current assets are assets that are expected to be converted into cash within one year.
I hope this helps!