When the United States Treasury Makes a Payment to a Business

question 122

Multiple Choice

When the United States Treasury makes a payment to a business, it usually takes the form of a

• A) check drawn on the Central Bank of China.
• B) check drawn directly against the U.S. Treasury.
• C) special Treasury voucher.
• D) check drawn against a bank in which tax balances are held.

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Definitions:

IFRS 3

Business Combinations, an International Financial Reporting Standard that outlines the accounting and reporting requirements for mergers and acquisitions.

Goodwill

The intangible asset that arises when a company acquires another business for more than the fair value of its separable net assets.

Fair Value

The expected selling price for an asset or the amount needed to cover a liability, facilitated through a systematic deal between market participants on the specific date of measurement.