Businesses Are Allowed to Record Goodwill

question 101

Multiple Choice

Businesses are allowed to record goodwill:

• A)when they enjoy an outstanding reputation and loyalty with customers.
• B)if they acquire another company at a price higher than the market value of its net assets.
• C)when they continue the business of an acquired company.
• D)if their market value has increased enormously in the recent past.

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Definitions:

Less Qualified

Having fewer credentials, experience, or skills compared to others in a specific context or for a particular job.

Approach-avoidance conflict

A psychological dilemma experienced when a single goal or event has both attractive and repulsive aspects, causing both a desire to approach and an urge to avoid.

Entrance scholarship

An entrance scholarship is a financial award provided to students upon entering a college or university, usually based on academic merit or other criteria.

B+ average

A grade point average that typically ranges between 3.3 to 3.6 out of 4.0, indicating above-average academic performance.