Which of the Following Is the Amount Capitalised as Goodwill

question 129

Multiple Choice

Which of the following is the amount capitalised as goodwill?

• A)The excess of the cost of an acquired company over the sum of the carrying amount of its assets
• B)The excess of the cost of an acquired company over the sum of the market value of its assets
• C)The excess of the cost of an acquired company over the sum of the carrying amount of its net assets
• D)The excess of the cost of an acquired company over the sum of the market value of its net assets

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Definitions:

Guaranteed Rate

A fixed interest rate assured by a lender or issuer for a specified period.

Discount Factor

A multiplier used to determine the present value of future cash flows or investments.

Working Capital

The measure of a company's short-term financial health and operational efficiency, calculated as current assets minus current liabilities.

Cash Inflow

The total amount of money being transferred into a company, typically measured over a specific period of time.