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:

Initial Investment

The amount of money used to start a new business venture, project, or investment.

Natural Resources

Raw materials and components found in the environment that can be used for economic gain, such as minerals, forests, water, and land.

Final Goods and Services

Goods and services sold to final, or end, users.

Entrepreneurial Ability

Entrepreneurial ability involves the skills and qualities that enable an individual to identify opportunities, take risks, and organize resources effectively to start and manage a business.