Goodwill means the good name or wide business connections or reputations earned by a businessman through his hard work and honesty. This helps the business to earn more profit.
When the business transactions are recorded in the books of accounts there remains a possibility of accounting errors. It may be because of hastiness in writing, negligence, oversight or incomplete knowledge of the principles of accountancy.
Betterment of fixed assets or improvement of an asset to produce more to improve its earning capacity or to reduce its operating expenses or to increase the life of asset.
Accounting principles = concepts + accounting conventions commonly known as GAAP (Generally accepted accounting principles) based on which financial statements are to be prepared. Accounting principles are divided into two parts, concepts, and conventions.