Which of the Following Is False Regarding the Valuation of Goodwill

question 38

Multiple Choice

Which of the following is false regarding the valuation of goodwill?

• A)U.S.accounting standards require that goodwill be specifically identified with an operating segment or a reporting unit.
• B)By definition,acquired parts of the business (or goodwill)must be sufficiently identifiable so that they can be managed as a unit or may be separately identified and sold as a unit.
• C)Goodwill is tested for impairment quarterly.
• D)Goodwill is the excess of the purchase price over the fair market value of the acquired company's tangible assets,identifiable intangible assets,and liabilities.

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Definitions:

Unwritten Rules

Social norms or practices that are understood and followed by members of a group or organization but are not officially documented.

Training Sessions

Organized events aimed at enhancing skills, knowledge, or performance in a specific area.

Vision, Mission

Vision refers to the aspirational description of what an organization would like to achieve in the future, while Mission is a statement about its core purpose and focus.

Volunteers

Individuals who offer their time, skills, and efforts to an organization or cause without expectation of financial compensation.