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.


Related Terms

Switch to smart accounting software. Switch to Zoho Books.   Start my free 14-day trial
Zoho Books

Manage your business accounting online

Maybe Later