According to the prudence concept businesses prefer not to open goodwill account in the books as not to inflate its assets.
We will learn 3 methods used by businesses to account for their goodwill.
1 Goodwill account is opened
2. Goodwill account is opened and then written off
3. Goodwill account is not opened
We will learn 3 methods used by businesses to account for their goodwill.
1 Goodwill account is opened
2. Goodwill account is opened and then written off
3. Goodwill account is not opened
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