Which of the Following Is Not True About Goodwill

question 21

Multiple Choice

Which of the following is not true about goodwill ?

• A) Goodwill must be written off over 20 years.
• B) Goodwill must be checked for impairment at least annually.
• C) The loss of key customers could impair the value of goodwill.
• D) Goodwill does not have to be amortized.
• E) Goodwill is shown as an asset on the balance sheet.

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Definitions:

More Power

Having increased influence, control, or authority over others or over a situation.

Ultimatums

Final demands or conditions issued by one party to another, often threatening specific consequences if not met.

Psychological Imbalance

A state where there is an unevenness in cognitive or emotional aspects within a person, possibly affecting decision-making and behavior.

Lack of Sophistication

Lack of sophistication in negotiations refers to a minimal level of skill, expertise, or complexity displayed by one or more parties.