BUSINESS ADMINISTRATION
BUSINESS LAW
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which item is NOT real property?
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land
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buildings
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minerals on land
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company’s goodwill
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Explanation:
Detailed explanation-1: -Goodwill is recorded as an intangible asset on the acquiring company’s balance sheet under the long-term assets account. Goodwill is considered an intangible (or non-current) asset because it is not a physical asset like buildings or equipment.
Detailed explanation-2: -Internally generated goodwill is not recognised as an asset because it is not an identifiable resource controlled by the enterprise that can be measured reliably at cost.
Detailed explanation-3: -Goodwill is an intangible asset, and hence it is classified as real account.
There is 1 question to complete.