A Friend Has Come to You with the Following Question

question 76

Essay

A friend has come to you with the following question, "What is this goodwill account that I see on the statement of financial position of a company that I own stock in?"
Instructions
Write a reply to your friend. Include in your explanation three factors that contribute to goodwill, under what circumstances goodwill is recorded, and how it is accounted for.

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Definitions:

Class

In the context of data, a grouping or categorization according to shared characteristics; in education, an organized period of instruction.

Simple Events

Events that cannot be broken down any further into simpler components in the context of probability.

Probabilities

The measure of the likelihood that an event will occur, often quantified as a number between 0 and 1.

Simple Events

An event in probability that consists of only one outcome or occurrence and cannot be broken down further.