Canadian Securities Course (CSC) Practice Exam 2025 - Free CSC Practice Questions and Study Guide

Question: 1 / 400

What does goodwill represent in accounting terms?

Loss potential

Asset value

Regular customer probability

Goodwill in accounting terms represents the intangible value or reputation that a company gains as a result of its brand, customer relationships, and other non-physical assets. This value is not easily quantifiable, which is why it is considered an intangible asset. Option A, loss potential, does not accurately represent goodwill as it is not a negative aspect but rather a positive one. Option B, asset value, is also incorrect as goodwill is not a physical or tangible asset. Option D, market price, does not accurately represent goodwill as it is not dependent on the market but rather the perceived value of the company's reputation and relationships.

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Market price

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