Accounting principles classify Goodwill as a/an:
- ATangible Asset
- BIntangible Asset
- CFictitious Asset
- DCurrent Asset
Solution & Step-by-step Explanation
Goodwill is an asset that lacks physical substance but possesses clear commercial value due to enterprise reputation and superior earnings capacity. Therefore, it is classified as an Intangible Asset. It is not a fictitious asset because it has real realizable sale value when a business is sold as a going concern.