An Accountant Is Not Sure About How to Recognise an Asset

question 48

Multiple Choice

An accountant is not sure about how to recognise an asset that is purchased in excess of fair value.Which of the following action will you recommend?

• A) Recognise the asset at fair value and the excess as goodwill.
• B) Recognise the asset at fair value and the excess as a loss on purchase.
• C) Recognise the asset at fair value and the excess as receivable from supplier.
• D) Recognise the asset at cost.

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Definitions:

Emotional Intelligence

The ability to recognize, understand, and manage one's own emotions as well as those of others.

Basic Level

In cognitive psychology, the basic level of categorization is the most natural and efficient level of categorization that occurs spontaneously in our cognition, neither too general nor too specific.

Emotional Intelligence

The ability to recognize, understand, and manage one's own emotions and the emotions of others, facilitating effective interpersonal interactions.

Job Performance

The level of effectiveness and efficiency with which an employee carries out their job responsibilities.