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Two national companies both sell a variety of soaps and lotions When looking at the

Two national companies both sell a variety of soaps and lotions. When looking at the books, though, one company lists goodwill as an asset, but the other company does not. What does this tell you about these companies?

  • A :

    The first company purchased an entire business to expand the company, whereas the second company likely has not yet purchased another entire business.

  • B :

    The first company regularly donates to charitable causes, whereas the second company does not donate to charitable causes.

  • C :

    The first company purchased patents above market value to expand their product line, whereas the second company likely developed all of their patents in-house.

  • D :

    The first company added research and development costs as an intangible asset, whereas the second company expensed their research and development costs immediately.

Feb 06 2020 View more View Less

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