Goodwill Can Be Recorded as an Asset When A(n)

question 51

Multiple Choice

Goodwill can be recorded as an asset when a(n)

• A)business has above normal profitability compared to other businesses in its industry.
• B)business can determine that it has created customer goodwill and name recognition.
• C)offer is received to purchase the business at a price in excess of the value of the assets.
• D)business is purchased and payment is made in excess of the value of the net assets.

Identify and explain the roles and obligations of merchants under the UCC.

Comprehend the concepts of good faith, value, and bona fide transactions under the UCC.

Distinguish between different types of sales contracts (e.g., sale on approval, sale or return) and understand the implications for risk of loss and title transfer.

Recognize the special provisions for buyers in the ordinary course of business.

---

Definitions:

Action Figures

Small, collectible figures often representing characters from movies, comic books, or video games, popular with both children and collectors.

Utility

In economics, the satisfaction or benefit derived from consuming a good or service.

Consumer Surplus

The distinction between what consumers are willing and financially able to pay for a good or service versus the actual payment they make.

Vending Machine

An automated machine that provides items such as snacks, beverages, cigarettes, or lottery tickets to consumers after money, a credit card, or a specially designed card is inserted into the machine.