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:

Foreign Exchange Rate

The price of one country's currency in terms of another country's currency.

Controlling Investor

An individual or entity that holds a significant portion of a company's shares, yielding the power to influence or direct the company's management and decisions.

Parent

In a business context, the term usually refers to a parent company that holds a controlling interest in subsidiary companies.