Internally Generated Goodwill Is Not Recorded by Accountants Because

question 31

Multiple Choice

Internally generated goodwill is not recorded by accountants because:

• A) it cannot be measured reliably.
• B) it is not important.
• C) it does not belong to the partners.
• D) it is immaterial.

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Definitions:

Satisfaction

A measure of how goods and services supplied by a company meet or surpass customer expectation.

Pleasure

A state of feeling pleased or satisfied, often resulting from the fulfillment of a desire or need.

Synonymous

Having the same or nearly the same meaning as another word or phrase in the same language.

Maximize Utility

The economic principle aiming to achieve the highest satisfaction possible from consumption given limited resources.