An Inconsistency in Accounting Theory Can Occur Because

question 96

Multiple Choice

An inconsistency in accounting theory can occur because

• A) internally developed goodwill is expensed, while purchased goodwill is capitalized.
• B) internally developed goodwill is capitalized, while purchased goodwill is expensed.
• C) internally developed goodwill is amortized, while purchased goodwill is maintained but tested for impairment.
• D) purchased goodwill is amortized, while internally developed goodwill is maintained but tested for impairment.

---

Definitions:

Figure

A numerical value representing data or a graphical representation of data in a visual format such as a chart, graph, or diagram.

Figure

A numerical value or a graphical representation used to express data, or, in another context, the shape or form of a human body.

Excessive Rate

A rate that is significantly higher than what is considered normal or acceptable.

Depth of Breathing

Refers to the extent of thoracic expansion and diaphragm movement during inhalation, affecting the volume of air taken into the lungs.