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:

SEC

The U.S. Securities and Exchange Commission, a federal agency responsible for regulating the securities industry and enforcing federal securities laws.

Performance Report

A report detailing the comparison between budgeted figures and actual figures, used to assess an organization's financial and operational performance.

Conversion Cost

The sum of labor and overhead expenses required to convert raw materials into finished goods.

Direct Materials

Raw materials that can be directly traced to the production of a specific product and are a direct cost in the manufacturing process.