Which of the Following Is Not True About Goodwill

question 21

Multiple Choice

Which of the following is not true about goodwill ?

• A) Goodwill must be written off over 20 years.
• B) Goodwill must be checked for impairment at least annually.
• C) The loss of key customers could impair the value of goodwill.
• D) Goodwill does not have to be amortized.
• E) Goodwill is shown as an asset on the balance sheet.

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Definitions:

Poorest Fifth

The segment of a population that falls within the lowest 20% in terms of income distribution.

Richest Half

The segment of a society that holds more than 50% of its wealth.

Poorest Half

Denotes the lower 50% of a population ranked by wealth or income levels, usually highlighting disparities in economic standing within societies.

State Enterprises

Businesses owned wholly or in part by the government and operated for the production and distribution of goods or services.