If a Company Has Goodwill on Its Books

question 172

Multiple Choice

If a company has goodwill on its books:

• A) the goodwill is amortized over a period determined by the Board of Directors.
• B) the goodwill must be increased to its market value on a yearly basis.
• C) a loss must be recorded if the goodwill has decreased in value.
• D) it must expense it immediately.

---

Definitions:

Components

Individual parts or elements that make up a larger system, machine, or piece of equipment.

Formal Reports

Detailed and structured documents that present information, analysis, and conclusions on specific topics or issues.

Organization's Qualifications

The credentials, expertise, and capabilities that make an organization suitable for a particular task or role.

Formal Proposal

A detailed and structured document submitted to offer a solution, service, or project to address a problem or need.