Since Goodwill Is an Intangible, It Is Amortized Each Year

question 136

True/False

Since goodwill is an intangible, it is amortized each year using the straight-line method, the same as other intangibles are amortized.

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Definitions:

Bank Statement

A monthly document provided by a bank detailing all transactions in an account, which can include deposits, withdrawals, service charges, and interest earned.

NSF Check

A check that a bank has declined to honor because the account on which it was drawn does not have sufficient funds.

EFT Deposit

Stands for Electronic Funds Transfer deposit, a method of transferring money directly from one bank account to another electronically.

Service Charge

A fee collected to pay for services related to the primary product or service being purchased, often added to bills in restaurants, banking, and lodging industries.