According to Generally Accepted Accounting Principles,goodwill Is Recorded as an Asset

question 65

Multiple Choice

According to generally accepted accounting principles,goodwill is recorded as an asset

• A)when favorable factors combine to create goodwill.
• B)when a company has superior earning power.
• C)when it is paid for as part of the purchase of a business.
• D)under no circumstances.

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Definitions:

Efficiency

The condition in which the economy is producing what people want at least possible cost.

Free-Trade Zone

A designated area within a country where goods may be landed, handled, manufactured, or reconfigured without direct intervention of the customs authorities.

European Community

A precursor to the European Union, it was an economic and political union of European countries aiming to foster economic integration and cooperation.

North Atlantic Treaty Organization

A military alliance formed in 1949 comprising North American and European countries to provide collective defense against aggression.