?? 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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Similar questions

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
How is goodwill computed if fresh start accounting is applied to a reorganized company?
Total asset turnover indicates the company's: A. Profitability.B. Ability to use its assets to generate sales.C. Liquidity.D. Debt position
Gain on Bargain Purchase treated as other income in a business combination should be: a. Credited to the income account of both acquirer and acquire b. Credited to the share premium account of the acquirer c. Credited to a deferred credit account d. Credited to the income account of the acquirer
While putting the value or price of an entity in financial records the lowest price is recorded not the current price or current market value. This is known as [A] Business Entity Concept [B] Conservatism [C] Expenditure Concept [D] Money Measurment Concept
What impact does goodwill have on the firm’sbalance sheet? On its income statement?
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
When an investor uses the cost method to account for investments in subsidiary, cash dividends received by the investor from the investee should normally be recorded as: A. Ignored. B. Dividend income. C. An addition to the investor’s share of the investee’s profit. D. A deduction from the investment account E. A deduction from the investor’s share of the investee’s profit.

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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