In Recording the Acquisition Cost of an Entire Business

question 147

Multiple Choice

In recording the acquisition cost of an entire business

• A)goodwill is recorded as the excess of cost over the fair value of identifiable net assets.
• B)assets are recorded at the seller's carrying amounts.
• C)goodwill, if it exists, is never recorded.
• D)goodwill is recorded as the excess of cost over the carrying amount of identifiable net assets.

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Definitions:

Marbury v. Madison

A landmark case in 1803 where the U.S. Supreme Court first declared the power of judicial review, establishing the basis for the judiciary's ability to declare laws unconstitutional.

Judicial Review

Judicial review is the doctrine under which legislative and executive actions are subject to review by the judiciary to affirm their legality or compliance with the constitution.

Constitutionality

The quality of being in accordance with the constitution or being authorized by the constitution.

Supreme Court

The highest judicial court in a country or state, often having the final say in legal matters and interpretations of the law.