Chapter 12

Question 1

GOODWILL: RECORDING RULE

HINT: “Goodwill” (i.e. kindness) from within (i.e. generated internally) should NOT be “capitalized on” (i.e. taken advantage of).

Answer 1

HINT:

“Goodwill“(i.e. kindness) from within (i.e. generated internally) should NOT be “capitalized on” (i.e. taken advantage of).

RULE:

Goodwill generated internally should NOT be capitalized.

Question 2

INTANGIBLE ASSETS: MAJOR CATEGORIES

HINT: Can A Company Give Too Much?

(i.e. showing kindness = “goodwill” → intangible asset)

Answer 2

• Customer-related intangible assets
• Artistic-related intangible assets
• Contract-related intangible assets
• Goodwill
• Technology-related intangible assets
• Marketing-related intangible assets