Which of the Following Statements Is False

question 12

Multiple Choice

Which of the following statements is false?

• A) Goodwill arises when one company acquires another company for a price in excess of the fair market value of the net identifiable assets acquired.
• B) Goodwill should be depreciated.
• C) Goodwill must be evaluated annually to determine if there has been a loss of value.
• D) If the carrying value of goodwill exceeds the fair value, the excess book value must be written off as an impairment expense.

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Definitions:

Relation

The way in which two or more concepts, objects, or people are connected.

Multiple Languages

The ability of an individual to speak, understand, read, and write in more than one language proficiently.