US GAAP Requires Significant Disclosures for Goodwill, Including All of the Following

question 136

Multiple Choice

U.S. GAAP requires significant disclosures for goodwill, including all of the following except ________.

• A) goodwill acquired
• B) goodwill included in the disposal of a business unit
• C) goodwill amortization
• D) goodwill impaired

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Definitions:

Profitability Ratio

A class of financial metrics used to evaluate a business's ability to generate earnings as compared to its expenses and other relevant costs incurred during a specific period of time.

Average Accounting Return

A financial ratio that measures the average net income a company expects to earn from an investment compared to its initial cost.

Book Value

The net value of a company's assets as recorded on the balance sheet, calculated by subtracting liabilities from the total value of assets.

Initial Investment

The amount of money used to start a business venture or project, not including operating costs or maintenance expenses incurred after the venture is operational.