Which of the Following Properly Describes the Accounting for Goodwill

question 98

Multiple Choice

Which of the following properly describes the accounting for goodwill?

• A)Goodwill is recorded when it is internally generated.
• B)Goodwill is amortized over its useful life.
• C)Goodwill is the difference between the amount paid for a company relative to the book value of the acquired company's net assets.
• D)Goodwill is written down when it has been determined to be impaireD.Goodwill is not amortized.Instead, it is reviewed for impairment and is written down when it has been determined to be impaired.

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Definitions:

Data Transfer

The process of moving information from one location to another, in other words, from register to register, from device to device, and so forth.

Compare

An instruction that compares the contents of two designated data memory locations of a programmable logic controller for equality or inequality.

Stored

Refers to data or information that has been saved in a memory device or storage medium for future use.

Words

In computing and digital systems, a fixed-sized piece of data handled as a unit by the instruction set or the hardware of the processor.