The assets of a company can either be classified as the tangible asset or intangible asset depending upon their physical existence. Those having physical existence are categorized as tangible one and vice versa. Goodwill is an intangible asset. Goodwill as the name suggests helps in generating profit. This asset of the organization is one of the most important asset affecting the profitability. There are various methods of its calculation. The treatment of self generated goodwill and purchased goodwill differs from each other. The valuation of intangible assets is the most technical issue as there are various methods of their valuations.
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