When Purchasing an Entire Company, What Is the Accounting Term

question 103

Multiple Choice

When purchasing an entire company, what is the accounting term for the purchase price in excess of identifiable assets?

• A) Goodwill
• B) Excess value
• C) Patent
• D) Intangible asset

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Definitions:

Chemical Energy

Chemical Energy is the potential of a chemical substance to undergo a transformation through a chemical reaction, resulting in the release or absorption of energy.

Taste Buds

Sensory organs on the tongue that are responsible for detecting and distinguishing the five elements of taste perception: sweet, sour, salty, bitter, and umami.

Organic Substances

Organic substances refer to chemical compounds that contain carbon-hydrogen bonds, typically associated with living organisms.

Chemical Substances

Materials with definite chemical compositions, which can be elements or compounds, involved in chemical processes.