Goodwill Can Be Recorded as an Asset When A(n)

question 51

Multiple Choice

Goodwill can be recorded as an asset when a(n)

• A)business has above normal profitability compared to other businesses in its industry.
• B)business can determine that it has created customer goodwill and name recognition.
• C)offer is received to purchase the business at a price in excess of the value of the assets.
• D)business is purchased and payment is made in excess of the value of the net assets.

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Definitions:

Civil War

A war between groups within the same country or state, often involving a struggle for power, territory, or ideological dominance.

Era of the Trust

A historical period in the late 19th and early 20th century marked by the rise and dominance of large business monopolies and trusts in the United States.

19th Century

The period from January 1, 1801, to December 31, 1900, marked by significant industrial, cultural, and political changes worldwide.

Clayton Act

A U.S. antitrust law enacted in 1914 aimed at preventing anticompetitive practices in their incipiency.