Lydia's Report Contains Sensitive Topics That May Upset Her Readers

question 115

Multiple Choice

Lydia's report contains sensitive topics that may upset her readers. What type of heading should she use in her formal business report? 

• A)Graphic headings 
• B)Functional headings 
• C)Talking headings 
• D)She should omit headings altogether.

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Definitions:

Acquisition Differential

The gap between the acquisition cost of a company and the fair value of its clearly identifiable net assets.

Impairment

A decrease in the recoverable value of an asset below its carrying amount, leading to an adjustment in the value recorded on financial statements.

Goodwill

An intangible asset that arises when a company acquires another company for a price higher than the fair value of its net tangible assets.

Impairment

A decrease in the recoverable value of an asset below its carrying amount, leading to a reduction in its recorded value on financial statements.