Goodwill can be recorded as an asset when:
Select one:
A. A business can determine that it has created customer goodwill and name recognition
B. A business has above normal profitability compared to other businesses in its industry
C. A business is purchased and payment is made in excess of the fair value of the identifiable net assets
D. An offer is received to purchase the business at a price in excess of the value of the assets
C. A business is purchased and payment is made in excess of the fair value of the identifiable net assets
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Which of the following is/are not true?
a. All corporations must issue common stock. b. Common shareholders have a claim on the assets of a firm after creditors and preferred shareholders have received amounts promised to them. c. Frequently, corporations grant voting rights only to common shares, giving their holders the right to elect members of the board of directors and to decide certain broad corporate policies (spelled out in the stock contract). d. Some firms issue more than one class of common shares, with each class granted different voting rights. e. none of the above
When merchandise that was sold is returned, a credit to sales returns and allowances is made
Indicate whether the statement is true or false