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All things being equal, a capitalization of internally generated Goodwill would: Increase companies liabilities. Increase the

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Answer #1

Ans. Goodwill is an intangible asset. Capitalisation of good will increases the companies non- current asset.

Capitalisation of goodwill does not have affect on liabilities and net income. Further return on assets decreases as asstes increase and net income remains same.

So correct answer is B capitalising Goodwill increases reported non current asset of the company.

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