?? Goodwill is recorded on the balance sheet when:a) It is internally generatedb) A company acquires another company formore than the fair market value of net assetsc) It is sold to another companyd) A company has been highly profitable

Explanation of Goodwill:Goodwill is an intangible asset that arises when a company acquires another…

Answered: Goodwill is recorded on the balance…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter16: Statement Of Cash Flows

Section: Chapter Questions

Problem 10Q: If a company reports a gain/(loss) from the sale of assets, as part of the net income on the income...

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The identifiable assets acquired and liabilities assumed in a business combination are generally measured at: a. Acquisition-date fair values b. Previous carrying amounts c. Fair value less cost to sell d. Cost
The leverage multiplier employed in the DuPont ratio would be higher if the firm bought back some of its equity shares. 1) True O 2) False
This is the residual interest in the economic resources of a company that remains after deducting economic obligations: Productive resources 3. Net income Owners’ interest 4. Net cash balance
Identify which one of the following is falling under the meaning of goodwill? a. The present value of firm's anticipated excess earnings b. The share of profit eligible to each partner c. The future value of firm's present earnings d. The past profits of the firm
TRUE OR FALSE Typically, intangible assets are shown on a company’s balance sheet at fair value.
The meaning of goodwill in accounting is: Multiple Choice The amount by which a company's value exceeds the value of its individual assets and liabilities. Long term assets held as investment. The support of the board of directors for the operating decisions of management. The cost of developing, maintaining, or enhancing the value of a trademark. Rights granted to an entity to deliver a product or service under specified conditions.
Which of the following would most likely appear under the heading of "Other Long-Term Assets" in the balance sheet? Multiple Choice Goodwill from the acquisition of another company Equipment used in primary operations Significant investment in equity securities of another company Long-term operating leases used in primary operations I
Under PFRS 3, when is a gain recognized in consolidating financial information? a. In a combination created in the middle of the fiscal year b. In an acquisition when the value of all assets and liabilities cannot be determined. c. When any bargain purchased is created d. When the amount of a bargain purchase exceeds the value of the applicable liability held by the acquired company.
A potential offering price for a company is computed by adding the estimatedgoodwill to the ______________?a. book value of the company's net assets.b. book value of the company's net identifiable assets.c. fair value of the company's net assets.d. fair value of the company's net identifiable assets. explain answer
If a company reports a gain/(loss) from the sale of assets, as part of the net income on the income statement, and the net book value of those assets on the date of the sale is known, can the amount of the cash proceeds from the sale be determined? If so, how?
Also known as the historical cost principle, ________ states that everything the company owns or controls (assets) must be recorded at their value at the date of acquisition. A. revenue recognition principle B. expense recognition (matching) principle C. cost principle D. full disclosure principle
An entity has financial assets held under a business model with the objective of holding financial assets in order to collect contractual cash flows. Prior to maturity date, the entity sells a significant portion of the financial assets. Which of the following statements is correct? The remaining financial assets within the "hold to collect" business model need not be reclassified. However, the change in circumstance may be relevant in assessing the business model for new financial assets that have been acquired or originated. The change in circumstance is a prior period error. Under the "hold to collect" business model, the entity needs to hold financial assets until their maturity dates. A significant sale of financial assets before their maturity date evidences an inability to hold and collect cash flows. Therefore, the remaining financial assets shall be reclassified to either FVPL or FVOCI. The entity shall change its business model because of the change in circumstance. The…

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Goodwill is recorded on the balance sheet when: a) It is internally generated b) A company acquires another company for more than the fair market value of net assets c) It is sold to another company d) A company has been highly profitable