Prior to 1998, the Dominant Approach to Accounting for Goodwill

question 17

Multiple Choice

Prior to 1998, the dominant approach to accounting for goodwill in the United Kingdom is the

• A) immediate write-off to reserves.
• B) immediate write-off to income.
• C) set up as an asset with amortization.
• D) set up as an asset without amortization.

---

Definitions:

Preselling

The practice of offering products or services for sale before they are released or available, to gauge customer interest and secure funding.

Crowdfunding

The process of raising funding for a new venture from a large audience (the “crowd”), typically through the Internet.

Task Completion

The act of finishing a specific duty or assignment that has been started.

Product

An item created through a process and offered for sale to meet a need or want, encompassing both physical goods and services.