The Inclusion of the Intangible Asset Goodwill in the Financial

Multiple Choice

The inclusion of the intangible asset goodwill in the financial statements of a company indicates:

A) That the company has a favorable reputation with its customers.
B) A monopoly position in the industry or superior management.
C) An unbroken record of annual earnings and dividends.
D) That the company has purchased a going business at a price in excess of the fair market value of the net identifiable assets.