Goodwill May Be Recorded in Which of the Following Circumstances

question 92

Multiple Choice

Goodwill may be recorded in which of the following circumstances?

• A)When the property, plant and equipment of a business increase in value.
• B)When a business earns a very high net income.
• C)When one business purchases another business.
• D)When a business sells property for more than its book value.

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Definitions:

Structural Functionalism

A theory within sociology that considers society as a sophisticated system where its elements collaborate to ensure unity and stability.

Positive Deviance

Actions considered deviant within a given context but later reinterpreted as appropriate or even heroic.

Heroic Deviance

Acts of deviance or disobedience that are celebrated or viewed as heroic owing to their perceived justice or benefit to society.

Given Context

The specific circumstances or background in which information is provided or an event occurs, influencing interpretation or understanding.