In a business combination, companies record identifiable intangible assets that they can reliably measure. All other intangible assets, too difficult to identify or measure, are recorded as
A) other assets.
B) indirect costs.
C) goodwill.
D) direct costs.

Question

Quizplus · Accepted Answer

Intangible assets that cannot be reliably measured or identified are recorded as goodwill in a business combination. Goodwill represents the excess of the purchase price over the fair value of identifiable assets and liabilities acquired in the transaction.

In a Business Combination, Companies Record Identifiable Intangible Assets That