Asked by Sophia Chiang on Jul 08, 2024
Verified
Which of the following accounts is only created as the result of acquiring a controlling interest in another company?
A) Patents
B) Goodwill
C) Acquisition expense
D) Acquisition revenue
Goodwill
An intangible asset representing the excess value paid for a company over its net assets at the time of acquisition, reflecting the company's reputation, brand, and other unquantifiable attributes.
Acquisition Expense
Costs directly associated with acquiring new assets or businesses, including legal fees, due diligence costs, advisory fees, and other related expenses.
Patents
Legal rights granted to inventors, giving them exclusive rights to use, make, sell, or distribute their inventions for a certain period.
- Gain insight into the consequences of holding distinct percentages of voting equity on the consolidation and financial statements.
Verified Answer
Learning Objectives
- Gain insight into the consequences of holding distinct percentages of voting equity on the consolidation and financial statements.
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