Question

if you see a lot of Goodwill on a company's Balance Sheet, it is an indicator...

if you see a lot of Goodwill on a company's Balance Sheet, it is an indicator that
1) they are using a straight line depreciation
2) they have accquired other companies
3) they are nonprofit
4) they have good relationship with customers and the community
5) That are a "B" corporation
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Answer #1

Answer:- Option 4:- they have good relationship with customers and the community

(Explanation:- Goodwill is an intangible asset and the elements that make up this intangible asset are comprised of things such as good reputation of company, loyal customer base and brand identity. All these are valuable assets for a company though they are not tangible assets in nature. So, if we see a lot of Goodwill on a company's Balance Sheet, it is an indicator that the company has a good relationship with customers and the community)

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