Which of the Following Statements Regarding Goodwill Is Not True

question 38

Multiple Choice

Which of the following statements regarding goodwill is not true?

• A)Goodwill is never amortized for financial reporting purposes.
• B)A company must review its goodwill for impairment annually.
• C)A company must review its goodwill for impairment whenever events or changes in circumstances occur that would more likely than not reduce the fair value below its carrying value.
• D)A company records goodwill at the time that it acquires another company or at the time it determines that material intellectual capital exists in its employees.

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Definitions:

Marketing Mix

The four main elements used by a marketing manager to market goods and services. These elements are product, price, distribution or place, and promotion.

Time Management Skill

The ability to use one's time effectively or productively, especially at work.

High-priority Tasks

High-priority Tasks are tasks that are deemed of high importance and urgency, requiring immediate attention and action.

Core Work Tasks

Essential activities or duties that are central to a job or position, which contribute to the achievement of an organization's goals.