Asked by Kimberly Ventura on Jul 06, 2024
Verified
Location of a company
A) Patent
B) Copyright
C) Trademark
D) Goodwill
Goodwill
An intangible asset that arises when a business is acquired for more than the fair value of its identifiable net assets.
Patent
A legal right granted by the government to an inventor, giving exclusive ownership of an invention for a certain period of time, prohibiting others from making, using, or selling it.
Copyright
Legal protection granted to the creators of original works, preventing unauthorized reproduction or distribution for a certain period.
- Acquire knowledge on the classification and accounting treatment of intangible assets.
Verified Answer
SJ
Samya JonesJul 11, 2024
Final Answer :
D
Explanation :
Goodwill is the appropriate classification for the location of a company, as it represents the value of a business' reputation, customer base, and other intangible factors that contribute to its success in a specific location. Patents, copyrights, and trademarks are all forms of intellectual property, but they do not relate to the physical location of a company.
Learning Objectives
- Acquire knowledge on the classification and accounting treatment of intangible assets.