Goodwill Is an Intangible Asset That Has Special Features

question 47

Multiple Choice

Goodwill is an intangible asset that has special features. Which statement below is true regarding the special nature of goodwill?

• A) Goodwill is amortized over a period not to exceed 40 years.
• B) Goodwill is recorded in the books of a company as the company creates it.
• C) Goodwill is recorded only when it is purchased in the acquisition of another company.
• D) Goodwill is amortized over a period not to exceed 20 years.

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Definitions:

Normal Eyeball

An eyeball that has proper shape and size, allowing for clear vision and normal focusing ability without the aid of corrective lenses.

Ciliary Muscles

The ring of smooth muscle fibers in the eye's middle layer that controls the lens's shape for focusing.

Cataract

A medical condition where the lens of the eye becomes progressively opaque, leading to blurred vision and, if untreated, blindness.

Clouding

A visual effect where transparency is reduced, leading to a opaque or milky appearance, often observed in materials or solutions.