Which of the Following Is the Proper Accounting Treatment for Purchased

question 97

Multiple Choice

Which of the following is the proper accounting treatment for purchased goodwill?

• A)Goodwill must be capitalized when acquired, and amortized over 70 years or less.
• B)Goodwill must be capitalized when acquired, and amortized over 20 years or less.
• C)Goodwill must be expensed when acquired.
• D)Goodwill must be capitalized when acquired, and expensed each year to the extent that the value has declined.

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Definitions:

Debridement

A medical procedure involving the removal of dead, damaged, or infected tissue to improve the healing potential of the remaining healthy tissue.

Absorption Dressing

A wound dressing specifically designed to absorb exudate (fluid discharged from wounds) and promote a moist healing environment.

Alginate Dressing

A wound dressing made from seaweed containing alginate, which absorbs wound fluid and forms a gel to promote healing.

Hydrocolloid Dressing

A type of bandage made of gel-forming agents, which provide a moist and insulating healing environment, commonly used for wounds and sores.