Which of the Following Statements Regarding Goodwill Is False

question 100

Multiple Choice

Which of the following statements regarding goodwill is false?

• A)Goodwill indicates that a company has acquired strong and well?established companies.
• B)Current United States' generally accepted accounting principles GAAP) allow for the amortization of goodwill to be up to 10 years.
• C)The periods over which goodwill can be amortized vary from country to country.
• D)Goodwill amortization amounts are often relatively small as compared to net income.

---

Definitions:

Reactance Theory

The idea that people are distressed by loss of freedom or options and seek to reclaim or reassert them.

Self-determination Theory

A theory of motivation concerned with supporting our natural or intrinsic tendencies to behave in effective and healthy ways.

Autonomy

The capacity and right of individuals to make their own choices and decisions independently, free from external control or influence.

Freedom

The authority or freedom to behave, communicate, or consider ideas freely, without any limitations or restrictions.