Each Event in an REA Model Will in Most Cases

question 84

Multiple Choice

Each event in an REA model will in most cases have at least one ________ agent and one ________ agent involved with the event.

• A)internal;resource
• B)external;entity
• C)internal;employee
• D)internal;external

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Definitions:

Goodwill

An intangible asset that arises when a business is acquired for more than the sum of the fair value of its identifiable tangible and intangible assets and liabilities.

Internally Generated

Refers to assets or resources that are created or produced within a company, rather than acquired from external sources.

Straight-Line Method

A method of calculating depreciation of an asset, which assumes the asset will lose an equal amount of value each year over its useful life.

Residual Value

The estimated value that an asset will have at the end of its useful life, also known as salvage value.