Which of the Following Is Not True About Goodwill

question 33

Multiple Choice

Which of the following is not true about goodwill?

• A)Goodwill reflects the value of knowledgeable employees.
• B)Goodwill reflects the value of a reputation for quality products.
• C)Under IFRS, goodwill has an indefinite life, and firms do not amortize the amount recognized as goodwill.
• D)Firms must test goodwill annually for a loss in value.
• E)Under U.S.GAAP, goodwill has an indefinite life, and firms amortize the amount recognized as goodwill.

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Definitions:

Minutes

are official records documenting the discussions, decisions, and actions taken during meetings.

Social Service Agency

An organization that provides services aimed at improving the well-being of individuals, families, and communities, often focusing on the vulnerable and marginalized.

Group Work Services

Services offered to groups to facilitate their function, improve dynamics, and assist them in achieving their objectives.

Monitoring

The ongoing process of observing, checking, and analyzing activities or performance to ensure objectives are being met.