U.S.GAAP
A)does not allow firms to amortize goodwill in measuring net income each period.
B)requires that an annual test for impairment in the value of goodwill be performed each period.
C)requires the write-down of goodwill and recognition of an impairment loss if an impairment in the value of goodwill exists.
D)all of the above
E)none of the above

Question

Quizplus · Accepted Answer

U.S.GAAP does not allow firms to amortize goodwill in measuring net income each period, but requires that an annual test for impairment in the value of goodwill be performed each period. If an impairment in the value of goodwill exists, U.S.GAAP requires the write-down of goodwill and recognition of an impairment loss. Therefore, all of the above options are correct.