According to GAAP Regarding Amortization of Goodwill, Which of the Following

question 51

Multiple Choice

According to GAAP regarding amortization of goodwill, which of the following statements is true?

• A) Goodwill recognized in consolidation must be amortized over 20 years.
• B) Goodwill recognized in consolidation must be expensed in the period of acquisition.
• C) Goodwill recognized in consolidation will not be amortized but subject to an annual test for impairment.
• D) Goodwill recognized in consolidation can never be written off.
• E) Goodwill recognized in consolidation must be amortized over 40 years.

---

Definitions:

Market Share

The segment of a market dominated by a specific company or product.

Sales Revenue

The total amount of money generated from selling goods or services before any expenses are subtracted.

Market Segments

Identifies groups of consumers within a broader market who share similar characteristics, needs, or purchasing behaviors, enabling tailored marketing strategies.

Product Life Cycle

Describes the stages a new product goes through in the marketplace: introduction, growth, maturity, and decline.