If an Operating Unit Is Sold,the Goodwill Related to That

question 54

True/False

If an operating unit is sold,the goodwill related to that unit may remain on the books of the reporting entity until replaced by another acquisition.

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Definitions:

Inventories

The raw materials, work-in-progress products, and finished goods that a company holds for the purpose of sale in the future.

Accounts Payable

Liabilities to creditors that must be paid within a short period, usually less than a year.

Operating Activities

Activities that constitute the primary or main activities of an organization, including production, sales, and delivery of services.

Cash Dividend

A cash distribution given to shareholders from the company's earnings.