The Reason Goodwill Is Sometimes Referred to as a Master

question 67

Multiple Choice

The reason goodwill is sometimes referred to as a master valuation account is because

• A) it represents the purchase price of a business that is about to be sold.
• B) it is the difference between the fair value of the net identifiable assets as compared with the purchase price of the acquired business.
• C) the value of a business is computed without consideration of goodwill and then goodwill is added to arrive at a master valuation.
• D) it is the only account in the financial statements that is based on value, all other accounts are recorded at an amount other than their value.

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Definitions:

Masturbation

The act of sexually stimulating oneself typically leading to orgasm.

Sexual Self-Stimulation

The act of stimulating one's own genitals or erogenous zones for sexual pleasure, often referred to as masturbation.

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The harmful or hazardous use of psychoactive substances, including alcohol and illicit drugs, leading to addiction or dependence.

Early Maturation

The process whereby children or adolescents reach physical and sexual development sooner than their peers, which can have various social and psychological effects.