Goodwill should be recorded in the accounting records only when
A) it is purchased from another company.
B) it can be established that a definite benefit or advantage has resulted to a firm from some item such as a good name,capable staff,or reputation.
C) it is acquired through the purchase of another business entity.
D) a firm reports above normal earnings for five or more consecutive years.

Question

Quizplus · Accepted Answer

The Answer of Goodwill should be recorded in the accounting records only when
A) it is purchased from another company.
B) it can be established that a definite benefit or advantage has resulted to a firm from some item such as a good name,capable staff,or reputation.
C) it is acquired through the purchase of another business entity.
D) a firm reports above normal earnings for five or more consecutive years.

Goodwill Should Be Recorded in the Accounting Records Only When