Goodwill Can Be Recorded

question 38

Multiple Choice

Goodwill can be recorded

• A)when customers keep returning because they are satisfied with the company's products.
• B)when the company acquires a good location for its business.
• C)when the company has exceptional management.
• D)only when there is a purchase of an entire business.

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Definitions:

Auto Repairs

Services provided by mechanics and technicians to fix and maintain vehicles to ensure their proper functioning.

Gasoline

A combustible, easily evaporated liquid obtained from petroleum, primarily utilized as fuel in engines that operate on internal combustion.

Housing Development

A housing development refers to a planned residential area, often consisting of houses designed and built by a single developer, providing various amenities and infrastructure.

Profit-Maximizing

An economic principle where a firm chooses a level of production where its marginal cost equals its marginal revenue, resulting in the highest possible profit.