Which of the Following Statements Is False

question 3

Multiple Choice

Which of the following statements is false?

• A) Goodwill is an intangible asset
• B) Goodwill is the excess of the price paid for the business, acquired over the net fair value of identifiable assets
• C) According to IFRS 3, internally generated goodwill must be shown as an asset on the statement of financial position
• D) Goodwill is recognized only where it is the result of a transaction

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Definitions:

Marginal Cost

The added cost faced when one additional unit of a product or service is produced.

Average Total Cost

The total cost of production divided by the quantity of output produced; it includes both fixed and variable costs.

Average Total Cost

The total cost of production divided by the number of units produced, encompassing both fixed and variable costs.

Total Variable Costs

The sum of expenses that vary directly with the level of production or sales volume.