Which of the Following Is Not True

question 113

Multiple Choice

Which of the following is not true?

• A)Firms must test goodwill annually for impairment.
• B)Goodwill is the excess of the amount paid for the acquired company over the fair value of identifiable net assets.
• C)Goodwill, because it includes unidentifiable intangible resources, has an indefinite life.
• D)U.S.GAAP requires tests for impairment of goodwill as part of a reporting unit because a firm cannot separate goodwill from other assets.
• E)U.S.GAAP requires firms to amortize goodwill over its expected useful life.

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