When an Entire Business Is Purchased Goodwill Is the Excess

question 234

True/False

When an entire business is purchased goodwill is the excess of cost over the book value of the net assets acquired.

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Definitions:

UNCITRAL Rules

A set of procedural rules adopted by the United Nations Commission on International Trade Law to govern arbitration proceedings.

Export and Import Permits Act

Legislation regulating the export and import of specific goods and technologies to and from a country.

Foreign Distribution Agreement

A legal contract between parties from different countries for the distribution of goods or services in a foreign market.