Which of the Following Is Correct

question 5

Multiple Choice

Which of the following is correct?

• A) The fair value of internally generated intangible assets should be estimated and recorded on the books of the entity that developed the assets even in the absence of a business acquisition.
• B) The fair value of internally generated intangible assets may be estimated but should not be recorded on the books or displayed on the financial statements of the entity.
• C) Managers may value their own companies and recognize goodwill in the company accounts even though an entity has not been acquired in a business acquisition.
• D) Goodwill should be recognized in the accounts whenever the value of the firm increases based on current market prices of the firm's common stock.

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Definitions:

Marginal Product

The additional output that results from using one more unit of a specific input, keeping other inputs constant.

Third Worker

In the context of labor and production, refers to the addition of a third employee in a process, which can affect productivity differently depending on the scenario.

Marginal Product

Additional output gained by employing one more unit of production.

Second Worker

The term "second worker" can refer to an additional employee hired to perform tasks, often implying the expansion of workforce due to increased workload.