Why Might Chief Executives React Very Positively to Current Goodwill

question 2

Multiple Choice

Why might chief executives react very positively to current goodwill accounting?

• A)Goodwill increases in value.
• B)Goodwill is amortized creating expenses that reduce net income, enabling a company to pay less income tax.
• C)Its amortization increases earnings per share.
• D)Goodwill is no longer amortized so income is greater than prior accounting requirements.

---

Definitions:

Wedge

A piece of material, typically metal or wood, with a sharp edge that tapers to a thin point, used for splitting, lifting, or securing.

Horseshoe

In symbolic logic, the horseshoe symbol represents the conditional or "if...then" statement, highlighting a logical relationship between two propositions.

Negations

Logical operations that invert the truth value of a given statement, turning true statements into false and vice versa.

Truth Values

The values that denote the truthfulness of a statement, typically categorized as true or false.