Which of the Following Statements Regarding Goodwill Is False

question 53

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) Goodwill amortization amounts are often relatively small as compared to net income.
• C) The periods over which goodwill can be amortized vary from country to country.
• D) Current United States' generally accepted accounting principles (GAAP) allows for the amortization of goodwill to be up to 40 years.

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Definitions:

Occurrence

An event that happens or takes place, especially one of importance.

Declaratory Judgment

A court order that determines the rights of parties without ordering any specific action or awarding damages.

Negligent

Failing to take proper care in doing something, leading to unintended damage or harm.

Insurance Policy

A contract between an insurer and a policyholder that specifies the terms under which the insurer agrees to compensate the policyholder for loss caused by specific events.