At the Date of Acquisition There Is No Recognition of a Deferred

question 11

Multiple Choice

At the date of acquisition there is no recognition of a deferred tax item in respect to goodwill because it is a residual amount and the recognition of a deferred tax item would:

• A) decrease the profit on consolidation.
• B) increase the profit on consolidation.
• C) increase the carrying amount of goodwill.
• D) decrease the carrying amount of goodwill.

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Definitions:

Customer Demand

The quantity of products or services that consumers are willing and able to purchase at various prices during a specified period.

Available Capacity

The maximum output or the total amount of work that a facility, employee, or machine can produce or accommodate in a specific period.

Inventory

The goods and materials that a business holds for the purpose of resale or production.

Simple Moving Average

A statistical calculation used to analyze data points by creating a series of averages of different subsets of the complete dataset.