Which of the Following Is False Regarding the Valuation of Goodwill

question 38

Multiple Choice

Which of the following is false regarding the valuation of goodwill?

• A)U.S.accounting standards require that goodwill be specifically identified with an operating segment or a reporting unit.
• B)By definition,acquired parts of the business (or goodwill)must be sufficiently identifiable so that they can be managed as a unit or may be separately identified and sold as a unit.
• C)Goodwill is tested for impairment quarterly.
• D)Goodwill is the excess of the purchase price over the fair market value of the acquired company's tangible assets,identifiable intangible assets,and liabilities.

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Definitions:

All-Or-None Response

The principle that no variation exists in the strength of a single action potential; only a stimulus strong enough to depolarize the membrane to its critical threshold level results in transmission of an action potential.

Depolarized

A state in which the membrane potential of a neuron is less negative compared to the resting potential, easing the initiation of an action potential.

THC

Tetrahydrocannabinol, the principal psychoactive constituent of cannabis that affects the brain and alters mood or consciousness.

Psychoactive

Substances that, when taken, alter mood, perception, or brain function.