Goodwill

Goodwill is a compensation paid for the reputation established by a business. It can be realised only at the time of an acquisition. Hence, it is termed as an Imaginary Asset. A reputed organization will obviously be acquired at a higher rate than their original value due to the high regard it has earned over the course of time.

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Related Terms

• Generally Accepted Accounting Principles
• Gross Profit / Loss
• Gross Sales