Multiple Choice Questions 1. Which one of the following is most likely to be reported as part

Question:

Multiple Choice Questions
1. Which one of the following is most likely to be reported as part of ?
a. Brand names
b. Broadcast rights
c. Non-competition agreements
d. Favorable location
2. What is the current standard for reporting acquired in-process R&D?
a. Not reported; becomes part of
b. Capitalized as an asset only if it is more likely than not that the outcome will be a viable project
c. Capitalized as an asset only if it has a future alternative use
d. Capitalized as an asset regardless of its probability of success or possible future use
3. Which of the following items related to an acquired company is most likely to be recorded by the acquirer?
a. Warranty liability
b. Pending lawsuit, where the acquired company is the defendant
c. Pending lawsuit, where the acquired company is the plaintiff
d. Fines that might be assessed by environmental agencies
Goodwill
Goodwill is an important concept and terminology in accounting which means good reputation. The word goodwill is used at various places in accounting but it is recognized only at the time of a business combination. There are generally two types of...