The Amount of Goodwill Arising from This Business Combination Is

question 40

Multiple Choice

The amount of goodwill arising from this business combination is:

• A) Nil.
• B) $(24,000).
• C) $12,000.
• D)$24,000.

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Definitions:

Miller-Orr Model

A finance model that helps in managing cash flows and cash reserves in a business efficiently.

Cash Flows

The aggregate quantity of cash flowing both in and out of a corporation, impacting its liquid assets.

Target Balance

A predetermined amount of money that a company or individual aims to have in an account at any given time.

Minimum Balance

The least amount of money that a bank requires a customer to have in an account to qualify for specific services or to avoid certain fees.