Goodwill is an intangible asset that has special features. Which statement below is true regarding the special nature of goodwill?

Question

Quizplus · Accepted Answer

Goodwill is recorded only when it is purchased in the acquisition of another company. Goodwill cannot be created by a company itself and therefore cannot be recorded in its books until it is acquired through purchase of another company. Once recorded, goodwill is not amortized but rather tested annually for impairment.

Goodwill Is an Intangible Asset That Has Special Features