How Is Negative Goodwill Reported on Financial Statements

question 15

Multiple Choice

How is negative goodwill reported on financial statements?

• A)On the consolidated SFP as "an excess of fair value over cost of assets acquired" under shareholders' equity
• B)On the consolidated SFP as "negative goodwill" between the liabilities and shareholders' equity
• C)On the consolidated SCI as "negative goodwill"
• D)On the consolidated SCI as a "gain on bargain purchase"

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Definitions:

Common Fibular

Nerve involved in motor and sensory functions of the lower leg, particularly in the muscles that flex the foot and toes.

Inferior Gluteal

Referring to the nerves or artery that serves the lower portion of the gluteal muscles in the buttocks, involved in the movement of the hip and thigh.

Ilioinguinal

Relating to the ilium, the largest bone in the pelvis, and the inguinal region, often referring to a specific nerve that carries sensation from the groin to the abdominal muscles.

Pudendal

Pertaining to the pudendum, the external genitalia, or the pudendal nerve that supplies the area.