In Recording the Acquisition Cost of an Entire Business

question 196

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 book values.
• C) goodwill if it exists is never recorded.
• D) goodwill is recorded as the excess of cost over the book value of identifiable net assets.

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Definitions:

Database Accuracy

The extent to which data in a database is correct, up-to-date, and free of errors.

Field Properties

Attributes or characteristics that define and restrict data input, display, or value in a database field.

Data Type

A category that defines one of the different kinds of data, for example, integer, floating-point, or string, specifying the types of values it can hold, the operations that can be carried out with it, and how it is stored.

Decimal Places

The count of numbers located after the decimal point in a value, signifying the exactness of the measurement.