Jakobe Company Acquires an Average of Two Companies Per Year

question 91

Multiple Choice

Jakobe Company acquires an average of two companies per year in its efforts to integrate and expand.Which of the following statements best represents Jakobe's treatment of multiple goodwill in the assessment of impairment?

• A)All goodwill must be netted at the reporting level for testing and isolated at the individual subsidiary level.
• B)The goodwill of a single unit will be selected at random each year for testing and all operating units must be cycled in testing every five years.
• C)Goodwill within operating segments can be netted,but goodwill that exists in different operating segments cannot be offset.
• D)Goodwill is not a factor in the testing of impairment,only the undiscounted cash flows of an individual reporting unit will be considered.

---

Definitions:

Company Property

Assets owned by a business, including physical items like buildings and machinery, and intangible assets like trademarks and patents.

Union Organizers

Individuals or groups involved in forming, joining, or promoting labor unions to advocate for workers' rights and interests.

Authorization Card

A card signed by workers indicating their desire for a union to represent them in collective bargaining with their employer.

Workplace Disruption

Any interruption or disturbance that affects the normal flow of work in an organization, potentially leading to decreased productivity.