Which of the Following Statements About Accounting for Goodwill Under

question 102

Multiple Choice

Which of the following statements about accounting for goodwill under GAAP is correct?

• A) Usually, goodwill is recognized each year by profitable companies, based on estimates of the value of their reputation and customer loyalty.
• B) Goodwill is typically recorded based on an appraisal report on goodwill.
• C) Goodwill is recorded when a company buys another, and the value of the goodwill equals the difference between the purchase price and the value of the identifiable assets and liabilities purchased.
• D) Once recorded, goodwill is never checked for impairment.

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Definitions:

Protein Synthesis

The biological process by which cells generate new proteins, translating genetic information from RNA into the amino acid sequence of proteins.

Initiation

The beginning or start of a process, event, or activity.

Elongation

Elongation in biology refers to the lengthening of structures or molecules, such as the growth of plant roots or the process during protein synthesis where the polypeptide chain is extended.

Termination

In genetics, termination refers to the end of the process of transcription or translation, finishing the synthesis of the RNA or protein molecule.