Which Statement Regarding Goodwill Is True

question 119

Multiple Choice

Which statement regarding goodwill is true?

• A) Goodwill is an unidentifiable intangible asset.
• B) Internally developed goodwill should be capitalized while purchased goodwill should be expensed.
• C) Goodwill can be defined as the value attached to the ability of a company to earn a higher than normal rate of return on the book value of its identifiable assets.
• D) In some situations, GAAP and IFRS requires that negative goodwill be recorded.

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Definitions:

Fowler's Position

A semi-upright sitting position used in medical settings to improve breathing and decrease pressure on the abdomen.

Headrest

An object designed to support the head, often attached to a seat or used independently for comfort and posture support.

Diagnosis

The identification of the nature and cause of an illness or other problem through the examination of symptoms and tests.

Procedure

A specific way of performing a task, especially a systematic or established one, often related to medical or technical operations.