Which statement best describes goodwill for accounting purposes?

• A. Goodwill is always an identifiable asset that can be sold separately.
• B. Goodwill is not considered an identifiable asset and is only recognized in a business combination; internally generated goodwill is never recognized.
• C. Goodwill is recognized as a separate intangible asset when generated internally.
• D. Goodwill is a financial asset.

Answer: (B)