Which of the Following Statements Is Correct Regarding Accounting Treatment

question 14

Multiple Choice

Which of the following statements is correct regarding accounting treatment of goodwill?

• A)Goodwill is recorded as an asset and is not written off as an expense unless its value decreases.
• B)Goodwill is recorded as an asset and amortized over 5 years regardless of any change in value.
• C)Goodwill is recorded as an asset and amortized over 40 years unless its value decreases.
• D)Goodwill is expensed immediately in the year acquired.