Why is ‘Goodwill’ considered an ‘Intangible Asset’ but not a ‘Fictitious Asset’? (ISC 2020)

SOLUTION

Goodwill cannot be seen or touched; it can only be felt. Hence, it is treated as an intangible asset. But it is not a fictitious asset because fictitious assets do not have a value whereas goodwill has a value and it can be purchased or sold with any other asset.




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