Businesses record goodwill ________.
A) when they enjoy an outstanding reputation and loyalty with customers
B) if they acquire another company at an amount higher than the market value of its net assets
C) when they continue the business of an acquired company
D) if their market value has increased significantly in the recent years
B) if they acquire another company at an amount higher than the market value of its net assets
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Natural Seed Company and Mill Valley Farmers Cooperative enter into a contract for a sale of hybrid seeds. Under the perfect tender rule, Natural must ship or tender seeds that
A. approximately conform to the contract description. B. entirely conform to the contract description in most ways. C. conform to the contract description in every way. D. substantially conform to the contract description.
Tangshan Antiques has a beta of 1.40, the annual risk-free rate of interest is currently 10 percent, and the required return on the market portfolio is 16 percent
The firm estimates that its future dividends will continue to increase at an annual compound rate consistent with that experienced over the 2010-2013 period. (a) Estimate the value of Tangshan Antiques stock. (b) A lawsuit has been filed against the company by a competitor in 2013, and the potential loss has increased risk, which is reflected in the company's beta, increasing it to 1.6. What is the estimated price of the stock following the filing of the lawsuit in 2013?
Bayas Corporation uses process costing. A number of transactions that occurred in June are listed below. (1) Raw materials that cost $39,800 are withdrawn from the storeroom for use in the Mixing Department. All of these raw materials are classified as direct materials.
(2) Direct labor costs of $16,100 are incurred, but not yet paid, in the Mixing Department. (3) Manufacturing overhead of $45,700 is applied in the Mixing Department using the department's predetermined overhead rate. (4) Units with a carrying cost of $87,600 finish processing in the Mixing Department and are transferred to the Drying Department for further processing. (5) Units with a carrying cost of $111,300 finish processing in the Drying Department, the final step in the production process, and are transferred to the finished goods warehouse. (6) Finished goods with a carrying cost of $98,200 are sold. Required:Prepare journal entries for each of the transactions listed above. What will be an ideal response?
Which of the following includes a provision that requires public companies to set policies to allow executive compensation to be taken back if it was based on inaccurate financial statements that did not comply with accounting standards?
A. The Dodd-Frank Wall Street Reform and Consumer Protection Act B. The Financial Accounting Standards Board Statement 123 R C. The American Recovery and Reinvestment Act D. The Troubled Asset Relief Program