A firm's good reputation for quality customer service is categorized as its what?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.

Question 1.Good Reputation for Quality Customer ServiceA firm's good reputation for quality customer…

Answered: A firm's good reputation for quality…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Similar questions

Each economic event or transaction will have a dual effect on financial position. Explain what is meant by this dual effect. and please describe how revenue recognition relates to transferring goods or services.
The primary source of revenue of a wholesaler is ?
Purchase of Heavy equipment by the business was recorded as an expense on the income statement so that profit can be underestimated. This is an example of a. Tax free b. Tax claim c. Tax evasion d. Tax avoidance
The amount business owes to others is known as: Revenue Expense Liabilities Assets
How the BONUS depreciation helps the businesses and why you think bonus depreciation was introduced. Explain based on your understanding.
When a franchisor acts as an agent for the franchisee, he will * A.not recognize revenue B.record the transaction in his books C.recognize profit D.defer recognition of profit until completion of the transaction
Which of the following conditions would support recognition of revenue? The seller’s price to the buyer is being negotiated. Delivery has occurred or services have been provided. Collection is possible. Significant risks and rewards of ownership of the goods will soon be transferred to the purchaser by the seller.
Sometimes, for the fixed assets of certain businesses, the balance in Accumulated Depreciation is equal to the cost of the asset. a. Can one record additional depreciation on the assets if the assets are still useful to the business? b. Why? Explain: c. Also, when can such a business make an entry to remove the cost and accumulated depreciation of the fixed assets from the account?
Which of the following statements is/are correct? 1. Depreciation represents the loss in market value of an asset. II. The statement of financial position is likely to do a better job at capturing the assets/resources of a retailer (such as a supermarket) than a professional services firm (such as a law firm or professional accountancy firm). III. All tangible non-current assets go through the process of depreciation. IV. The following will have a negative impact on profitability in a given year: (a) increasing the allowance for trade receivables on the balance sheet, (b) reducing the useful life of depreciable non-current assets, (c) writing down closing inventory. a. Another combination of statements not shown among the other answers. b. All of the statements are correct. c. (II) and (IV) d. (I) and (III) e. (I), (II) and (III) f. (I), (III) and (IV)
In valuing a business, there are three primary sources of value: The value of operations, the value of fixed assets and the value of non- operating assets. True False
The reason goodwill is sometimes referred to as a master valuation account is because a. it represents the purchase price of a business that is about to be sold.b. it is the difference between the fair market value of the net tangible and identifiableintangible assets as compared with the purchase price of the acquired business.c. the value of a business is computed without consideration of goodwill and thengoodwill is added to arrive at a master valuation.d. it is the only account in the financial statements that is based on value, all otheraccounts are recorded at an amount other than their value.
What business record shows the results of the proprietorship’s borrowing assets from the business, usually anticipation of profits? A. Proprietor’s Withdrawals B. Proprietor’s Investment C. Proprietor’s Capital D. Proprietor’s Assets

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