The amortization of goodwill
A) is dependent upon the number of years a company expects to use the benefits it provides.
B) does not happen as it is deemed to have an indefinite life.
C) represents as acceptable an accounting practice as does the immediate write-off method.
D) should be computed using the straight-line method unless another method is deemed more appropriate.

Question

Quizplus · Accepted Answer

Goodwill is not amortized because it is considered to have an indefinite life under accounting standards. Instead, it is tested annually for impairment.

The Amortization of Goodwill