Goodwill Is

question 48

Multiple Choice

Goodwill is:

• A) an intangible asset, as defined in AASB 138.
• B) future economic benefits arising from assets that are not capable of being separately recognised or individually identified
• C) determined as being the excess of the fair value of the identifiable net assets acquired over the cost of an acquisition.
• D) recognised by the acquirer, at acquisition date, as an asset in its own books.

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Definitions:

Prepaid Insurance

Coverage payments made in advance that are recorded as assets and then expensed over the period that the insurance policy covers.

Advance Payment

Payment made to a supplier or service provider before receiving the goods or services.

Expense

Expenditures made by a business during the revenue generation process.

Residual Value

The anticipated worth of an asset upon reaching the conclusion of its serviceable period.