Which of the Following Is the Proper Accounting Treatment for Purchased

question 119

Multiple Choice

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

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

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Definitions:

Illegal Immigration

The act of moving to another country without legal permission or overstaying a visa.

Construction Workers

Individuals engaged in the physical construction of buildings, roads, and other infrastructure projects.

Illegal Immigrants

People who enter or reside in a country without the proper authorization from its government.

Negative Impact

Consequences or outcomes that result in a detrimental effect on people, entities, or the environment.