Questions: Goodwill appears on the balance sheet

The answer is the first one: balance sheet.

Explanation for each option:

1. Balance sheet: Goodwill is an intangible asset that arises when a company acquires another company for more than the fair value of its net identifiable assets. It is recorded on the balance sheet under the assets section.

2. Statement of changes in stockholders' equity: This statement shows changes in the equity section of the balance sheet, including retained earnings, common stock, and other equity items. Goodwill does not appear here.

3. Income statement: The income statement reports a company's financial performance over a specific accounting period, including revenues, expenses, and profits. Goodwill is not reported on the income statement.

4. Statement of cash flows: This statement provides information about a company's cash inflows and outflows over a period. Goodwill is not directly reported on the statement of cash flows, although the acquisition of goodwill may be reflected in the investing activities section.

Summary: Goodwill appears on the balance sheet.