QUESTION 14

1. The statement concerning goodwill that is not correct is:

   		Goodwill can be recognised on the balance sheet only if it is purchased
   		Goodwill is calculated as the excess of the consideration paid for a business over the fair value of the net assets acquired
   		Goodwill can only be purchased when a business is acquired as a going concern
   		Goodwill represents the value of trademarks, brand names, patents, licences etc
   		None of the statements is incorrect; i.e. all are correct statements

1 points

QUESTION 15

1. A machine is purchased for $130000. It is estimated that it has a useful life of 8 years and will then be sold for $10000. Using the straight-line method calculate the amount of depreciation to be charged for each year of useful life.

   		$1625
   		$10000
   		$16250
   		$15000
   		$0

QUESTION 7

1. The accounting convention that requires items in the balance sheet to be valued at their acquisition cost, is the:

   		realisation convention.
   		historic cost convention.
   		matching convention.
   		money measurement convention.