Which of the Following Is Correct

question 5

Multiple Choice

Which of the following is correct?

• A) The fair value of internally generated intangible assets should be estimated and recorded on the books of the entity that developed the assets even in the absence of a business acquisition.
• B) The fair value of internally generated intangible assets may be estimated but should not be recorded on the books or displayed on the financial statements of the entity.
• C) Managers may value their own companies and recognize goodwill in the company accounts even though an entity has not been acquired in a business acquisition.
• D) Goodwill should be recognized in the accounts whenever the value of the firm increases based on current market prices of the firm's common stock.

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Definitions:

Enhanced Outcomes

Results or consequences that exceed the original expectations or objectives, often through improved efficiency, effectiveness, or quality.

Ethical Climates

The prevailing beliefs, values, and norms in an organization that influence ethical decision-making and behaviors.