Which of the Following Statements Is Correct Regarding Accounting Treatment

question 132

Multiple Choice

Which of the following statements is correct regarding accounting treatment of goodwill?

• A) Goodwill is recorded as an asset and is not written off as an expense unless its fair value is less than its book value.
• B) Goodwill is recorded as an asset and amortized over 5 years regardless of any change in value.
• C) Goodwill is recorded as an asset and amortized over 40 years unless its fair value decreases.
• D) Goodwill is expensed immediately in the year acquired.

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