Which of the Following Is the Proper Accounting Treatment for Purchased

question 97

Multiple Choice

Which of the following is the proper accounting treatment for purchased goodwill?

• A)Goodwill must be capitalized when acquired, and amortized over 70 years or less.
• B)Goodwill must be capitalized when acquired, and amortized over 20 years or less.
• C)Goodwill must be expensed when acquired.
• D)Goodwill must be capitalized when acquired, and expensed each year to the extent that the value has declined.

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Definitions:

Unconditioned Stimulus

In classical conditioning, a stimulus that naturally and automatically triggers a response without prior conditioning.

Tone

The quality or character of sound, or the attitude expressed in writing or speech, conveyed through the choice of words and style.

Air Puff

A method often used in psychological experiments to deliver a quick burst of air as a stimulus or to measure blink reflexes.

Conditioned Response

A response that is taught in reaction to a stimulus that was once neutral but has become linked with a stimulus that naturally evokes a response.