The Intangible Asset Goodwill May Be

question 11

Multiple Choice

The intangible asset goodwill may be

• A) capitalized only when purchased.
• B) capitalized either when purchased or created internally.
• C) capitalized only when created internally.
• D) written off directly to retained earnings.

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Definitions:

Taxable

Relates to income, assets, or transactions that are subject to tax by governmental authorities.

Gross Profit Percentage

A financial metric that represents the proportion of money left over from revenues after accounting for the cost of goods sold, expressed as a percentage.

Discounts

A deduction from the usual cost of something, often provided as a promotion or to certain groups like students or veterans.

Taxable

Pertaining to income or transactions that are subject to tax by the relevant tax authority.