In Verifying the Amount of Goodwill Recorded by a Client,the

question 45

Multiple Choice

In verifying the amount of goodwill recorded by a client,the most convincing evidence that an auditor can obtain is by comparing the recorded value of assets acquired with the

• A) Assessed value as evidenced by tax bills.
• B) Seller's book value as evidenced by financial statements.
• C) Insured value as evidenced by insurance policies.
• D) Appraised value as evidenced by independent appraisals.

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Definitions:

Preexisting Duty

An obligation that one party is already legally required to perform, which cannot serve as consideration for a new contract.

Highlights

Key points or significant details that stand out within a larger context.

Preexisting Duty

An obligation that a party is already legally bound to perform, which cannot serve as consideration for a new contract.

Bilateral Contract

A type of agreement involving two parties where each side promises to fulfill certain obligations to the other; a mutual exchange of promises.