Purchased Goodwill Should

question 61

Multiple Choice

Purchased goodwill should

• A) be written off as soon as possible against retained earnings.
• B) be written off as soon as possible as an other expense item.
• C) be written off by systematic charges as a regular operating expense over the period benefited.
• D) not be amortized.

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Definitions:

Cheques

Written, dated and signed instruments that direct a bank to pay a specific sum of money to the bearer.

Disburses

The act of paying out or distributing funds, typically related to the operational expenses or investment payouts of a company.

Average Amount

A statistic that represents the central or typical value of a set of numbers, calculated by dividing the sum of all values by the number of values.

BAT Model

A model used in negotiation that stands for Best Alternative To a Negotiated Agreement, helping parties determine their course of action should negotiations fail.