The Reason Goodwill Is Sometimes Referred to as a Master

question 165

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 tangible and identifiable intangible assets and 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.

---

Definitions:

Bloodborne Pathogen

Infectious microorganisms in human blood that can cause disease in humans.

Intravenous Infusion

The administration of liquid substances directly into a vein through an IV line.

Alcohol Swab

A small pad saturated with alcohol used for cleaning or disinfecting the skin, especially before an injection.

Medication Order

A formal directive given by a healthcare professional for the administration of a specific drug to a patient.