Goodwill Should Be Recorded in the Accounting Records Only When

question 50

Multiple Choice

Goodwill should be recorded in the accounting records only when

• A) it is purchased from another company.
• B) it can be established that a definite benefit or advantage has resulted to a firm from some item such as a good name,capable staff,or reputation.
• C) it is acquired through the purchase of another business entity.
• D) a firm reports above normal earnings for five or more consecutive years.

---

Definitions:

Abbreviation C'BORE

The shorthand notation for "Counterbore," indicating a cylindrical flat-bottomed hole that enlarges another hole, often to hide a fastener head.

Cutting-plane Line

A line on a drawing that indicates the imaginary plane where a part is cut to reveal internal features.

Deep

A descriptive term used in various contexts to indicate a considerable distance from the surface or edge, often related to the dimension of a feature.

Depth

The measurement from the top surface to the bottom in an object, often used to specify the extent of features such as holes or cuts.