In Accounting,which of the Following Is True of Goodwill

question 79

Multiple Choice

In accounting,which of the following is true of goodwill?

• A)It may be recorded whenever a company achieves a level of profit that exceeds the industry average.
• B)It does not need to be amortized because its useful life is indeterminate.
• C)It may be recorded when a company purchases another business.
• D)It must be expended in the period it is recorded because benefits from goodwill are difficult to identify.