Explain the accounting issues for recording goodwill.

Q: how do you determine when goodwill will be written off under the impairment rules

A: Goodwill:Goodwill is the good reputation developed by a company over years. This is recorded as an…

Q: impairment testing for goodwill?

A: ABOUT GOODWILL  :- Goodwill is an Intengible Assets of the Business . Which shows the Reputation of…

Q: Assuming the use of full goodwill approach, compute for the goodwill.

A:

Q: How do you view goodwill on the balance sheet - specifically, if certain levels of it would cause…

A: 1.) I see the goodwill on the balance sheet as synergies , which was estimated at the time of the…

Q: Explain the impairment of goodwill, in general

A: Corporate finance is referred as the decision of the firm to take capital investments and other…

Q: what is accounting for goodwill and what are its implications?

A: Goodwill is an intangible asset. It generally arises from the acquisition of a business. In other…

Q: Distinguish between internally generated goodwill and purchased goodwill and explain how each of…

A: Solution- Goodwill Meaning in Accounting Goodwill arises when a company acquires another entire…

Q: If Goodwill is understated on the financial statements: O a. Total Liabilities are understated O b.…

A: The correct answer for the above mentioned question is given in the following steps for your…

Q: Explain a bill-and-hold sale. When is revenue recognizedin these situations?

A: When the buyer is not ready to take the delivery but accepts the title and the billing, then it is…

Q: What is the accounting treatment for supplies inventories if the purchases method is used to record…

A: Supplies generally form a part of current assets of the entity and represent the amount of supplies…

Q: What are the valuing inventories?

A: Cost:   It is the economic value incurred by an organization to manufacture a product or to render a…

Q: Under what circumstances is it appropriate to recordgoodwill in the accounts? How should goodwill,…

A:

Q: What Is Goodwill And How Is It Accounted For?

A: Definition:   Goodwill: Goodwill is a good reputation developed by a company over the years. This is…

Q: Measurement is the process of assigning numbers to objects such inventories or plant assets and o…

A: The process of assigning numbers or labels to any person , object or event is called measurements.

Q: During what situations goodwill is essential to be valued?

A: Goodwill is an intangible asset. Value of a brand,  Good relations with customers, solid customer…

Q: Define goodwill impairments.

A: Goodwill impairment is an accounting charge that companies record when goodwill's carrying value on…

Q: Provide detailed rational of why goodwill must be adjusted for impairment

A: Goodwill impairment is a charge that companies record when goodwill's carrying value on financial…

Q: On the June 1, combined balance sheet, how much is reported for goodwill?

A: On 01.06.20x9, CAP CO. paid = P800000 for net assets of SHER CO.  The balance sheet of the SHER CO.…

Q: Define refunding operation

A: Introduction: Refunding is the method of withdrawal or repayment of an existing bond issue by…

Q: Define receivables and explain issues related to their recognition.

A: Accounting: Accounting is a system, or a process of collecting and organizing economic transactions,…

Q: What steps are taken to prepare Income and Expenditure Account from a Receipt and Payment Account?

A: Introduction: Income and expenditure account to determine the surplus or deficit of income over…

Q: When should the transfer of receivables be recorded as a sale?

A: When a Note receivable is passed to a Transferor, the transferred value is separated from the…

Q: nder what circumstances is it appropriate to record goodwill in the accounts? How should goodwill,…

A: Goodwill is the amount of the reputation of the company, it is something that cannot be seen or…

Q: Internally generated goodwill reported at financial position at cost O True O False

A: Goodwill- Internally Generated Goodwill An intangible asset refers to an asset that is not present…

Q: Describe the procedures for conducting a goodwill impairment test.

A: Goodwill: Goodwill is an intangible asset. It is defined as the excess of cost of an acquired…

Q: Describe the steps of Special Issues in Revenue Recognition.

A: Revenue recognition refers to principle of accounting which specifies revenue conditions.

Q: COMPUTE THE GOODWILL.

A: Step 1 Since as per given case, the acquirer has acquired all assets and liabilities or acquired…

Q: Describe the accounting treatment for costs subsequent to acquisition.

A: Costs subsequent to acquisition: It refers to those additional expenditures which are related to the…

Q: What amount of goodwill will be reported?

A: Consolidated balance sheet The financial position of a combination of two companies is represented…

Q: Distinguish between substantive tests of transactions and tests ofdetails of balances. Give one…

A: Distinguish between substantive tests of transactions and tests of details of balances.

Q: Distinguish between Income and Expenditure Account and Receiptand Payment Account.

A: Difference between income and expenditure account and receipt and payment account:

Q: What is the amount of Goodwill

A: Goodwill/Gain on Bargain purchase:  Purchase consideration/Investment  Add: Non controlling Interest…

Q: Compute the goodwill (gain on bargain purchase).

A: The goodwill (gain on bargain purchase) is calculated as follows:Reference:

Q: Describe how accounts are used to record information about the effects oftransactions?

A: Firstly the transaction are recorded in the original books i.e. Journal, when the transactions are…

Q: How is independent verification carried out in a manual revenue system, and give an example?

A: Verification is a process under which the confirmation is made by the auditor related to the actual…

Q: Besides inventories, what other assets often appear on manufacturers’ balance sheets but not on…

A: Nature of assets of both the companies differs with each other as Manufacturing Companies deals with…

Q: Describe the steps to record non monetary asset exchange.

A: Definition:   Non- monetary exchange: When fund transfers are not involved in the exchange and the…

Q: Compute for the goodwill.

A: Purchase consideration: Fair value of the equity investment + Purchase price paid for acquiring…

Q: What is Revenue Recognition?

A: The income statement is the one of the financial statements of the business.

Q: COMPUTE FOR THE GOODWILL.

A: Goodwill is an intangible asset that is related to the takeover of one company by another. In fact,…

Q: Distinguish between Receipts and Payments Account and Income andExpenditure Account.

A: Revenues: Revenues are earnings from operations of a business. The operating activities are sale of…

Q: What is the nature of a sale on consignment?

A: Consignment is a business sale transaction between a consignor and a consignee. Under consignment…

Q: What is a consignment arrangement? Explain the accounting treatment of goods held on consignment.

A: Goods on Consignment: When the goods are transferred by one company to another company for selling…

Q: For which of the following accounts would the matching concept be the most appropriate?a. Cost of…

A: Matching principle in accounting says that all revenues of the business for the particular period…