Which of the Following Observations Concerning "Goodwill" Is NOT Correct

question 44

Multiple Choice

Which of the following observations concerning "goodwill" is NOT correct?

• A) Once written down, it may be written up for recoveries.
• B) It must be tested for impairment at least annually.
• C) Goodwill impairment losses are recognized in income from continuing operations or income before extraordinary gains and losses.
• D) It must be reported as a separate line item in the balance sheet.

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Definitions:

Cnidarians

A phylum of aquatic invertebrates that includes jellyfish, corals, and sea anemones, known for their distinctive stinging cells called cnidocytes.

Gastropods

A large class of mollusks that include snails and slugs, characterized by a single shell (though some are shell-less) and a muscular foot for locomotion.

Ingest Food

The act of consuming food by mouth, initiating the process of digestion.

Sexual Reproduction

A biological process where two cells from different individuals unite to produce the first cell of a new organism.