Goodwill Should Be Recorded in the Accounting Records Only When

question 50

Multiple Choice

Goodwill should be recorded in the accounting records only when

• A) it is purchased from another company.
• B) it can be established that a definite benefit or advantage has resulted to a firm from some item such as a good name,capable staff,or reputation.
• C) it is acquired through the purchase of another business entity.
• D) a firm reports above normal earnings for five or more consecutive years.

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Definitions:

Peek-A-Boo

A game played with young children that involves alternately hiding and revealing the face to entertain or pleasantly surprise the child.

Secure Attachment

A healthy emotional bond that forms between a child and caregiver, characterized by trust and a sense of safety.

Strange Situation

A procedure developed in psychology to observe attachment relationships between a caregiver and child.

Wary

Being cautious and alert to potential dangers or problems; having a sense of carefulness.