Goodwill Is an Intangible Asset That Has Special Features

question 24

Multiple Choice

Goodwill is an intangible asset that has special features.Which statement below is true regarding the special nature of goodwill?

• A) Goodwill is recorded in the books of a company as the company creates it.
• B) Goodwill is amortized over a period not to exceed 40 years.
• C) Goodwill is recorded only when it is purchased in the acquisition of another company.
• D) Goodwill is amortized over a period not to exceed 20 years.

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Definitions:

Establishment

A recognized or certified institution or place where a particular activity is performed or conducted.

Advancement

The process of moving forward or making progress, particularly in one's career or in the hierarchy of an organization.

Levinson

Refers to Daniel Levinson, a psychologist who proposed theories on adult development, highlighting stages and transitions over the lifespan.

Parents

Individuals who have contributed to the birth or upbringing of a child, typically playing a significant role in their development and socialization.