A company should choose a depreciation method that
Answer

best allocates the original cost of...

Question

A company should choose a depreciation method that
Answer 
 
best allocates the original cost of the asset to the periods benefited by the use of the asset.
 
saves the most taxes.
 
minimizes net income.
 
shows the highest amount of net income.
Goodwill can be recorded as an asset when a(n)
Answer 
 
business has above normal profitability compared to other businesses in its industry.
 
business can determine that it has created customer goodwill and name recognition.
 
offer is received to purchase the business at a price in excess of the value of the assets.
	
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Robert · Accepted Answer

A company should choose a depreciation method that 
Answer  
  
 best allocates the original cost of the asset to the periods benefited by the use of the asset. 
  
 saves the most taxes. 
  
 minimizes net income. 
  
 shows the highest amount of net income. 
 
Goodwill can be recorded as an asset when a(n) 
Answer  
  
 business has above normal profitability compared to other businesses in its industry. 
  
 business can determine that it has created customer goodwill and name recognition. 
  
 offer is received to purchase the business at a price in excess of the value of the assets. 
  
 business is purchased and payment is made in excess of the value of the net assets. 
 
  
Current accounting standards indicate that the costs of intangible assets with an indefinite life, such as 
goodwill, should 
Answer  
  
 not be amortized. 
  
 be reported on the statement of retained earnings in the year in which acquired. 
  
 be amortized over a reasonable period of time not to exceed 40 years. 
  
 increase an expense account entirely in the year in which acquired. 
 
With respect to the statement of cash flows, 
Answer  
  
 repurchase of stock is a financing activity. 
  
 a stock split is a financing activity. 
  
 a stock dividend is an investing activity. 
  
 the declaration of a cash dividend account is an operating activity. 
 
When bonds are issued by a company, the recording of the transaction will include an 
Answer  
  
 increase in liabilities and a decrease in stockholders' equity. 
  
 increase in liabilities and an increase in stockholders' equity. 
  
 increase in assets and an increase in liabilities. 
  
 increase in assets and an increase in stockholders' equity.

A company should choose a depreciation method that Answer best allocates the original cost of the asset to the periods benefited by the use of the asset. saves the most taxes. minimizes net income....

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