Which Statement Is Not Correct

question 74

Multiple Choice

Which statement is not correct?

• A)Goodwill represents the difference between the purchase price and the fair value of net assets acquired.
• B)Fair value is the after-tax amount at which an item could be sold in an arm's length transaction.
• C)Economic goodwill differs from accounting goodwill and can be created by branding.
• D)Fair value is the amount which could be exchanged in an arm's length transaction.

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Definitions:

Hamburger Standard

An informal way of measuring purchasing power parity (PPP) between nations, using the price of a McDonald's hamburger as the benchmark.

Undervalued Currency

A currency whose value is lower than what is perceived as its true value based on economic fundamentals or market conditions.

Capital Account

A national account that records transactions involving the purchase and sale of assets, such as property and stocks, between residents of one country and those of others.

Surplus

The amount by which the quantity supplied of a product exceeds the quantity demanded at a specific (above-equilibrium) price.