How Often Should Goodwill Acquired in a Business Combination Be

question 2

Multiple Choice

How often should goodwill acquired in a business combination be tested for impairment?

• A)Whenever there is an indication of impairment
• B)Whenever there is a change in circumstances in the business
• C)At least once a year
• D)At least once every two years

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Definitions:

Experimental Group

The subjects in an experiment who receive some special treatment in regard to the independent variable.

Dependent Variable

The variable in an experiment that is observed and expected to change as a result of manipulations in the independent variable.

Independent Variable

In scientific research, the variable that is manipulated or changed by the researcher to observe its effects on the dependent variable.

Correlation Coefficient

A numerical index of the degree of relationship that exists between two variables.