Under AASB 138 Intangibles,goodwill May Only Be Recognised as an Asset

question 15

Multiple Choice

Under AASB 138 Intangibles,goodwill may only be recognised as an asset if it:

• A)arises as a result of creating new assets within the normal business operations
• B)does not exceed its internally recorded cost
• C)is internally generated
• D)is acquired as part of a business combination.

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Definitions:

Perfect Competition

A market structure characterized by a large number of small firms, homogenous products, perfect information, and no barriers to entry or exit, leading to price-taking behavior.

Demand Curves

Graphical representations showing the relationship between the price of a good or service and the quantity of that good or service that consumers are willing and able to purchase at different prices.

Marginal Revenue Curves

Graphical representations that show how marginal revenue varies as output level changes, used by firms to determine the most profitable level of production.

Price Discrimination

A pricing approach where a single provider charges different prices for essentially the same products or services in different markets.