Goodwill captures the value of other ________ that the firm acquired through acquisition.If the value of these ________ assets declines over time,the amount of goodwill listed on the balance sheet will be ________ by a write-down that captures the change in value of the acquired assets.
A) "tangibles"; tangible; reduced
B) "tangibles"; tangible; raised
C) "intangibles"; intangible; raised
D) "intangibles"; intangible; reduced

Question

Quizplus · Accepted Answer

Goodwill captures the value of other intangible assets that the firm acquired through acquisition. If the value of these intangible assets declines over time, the amount of goodwill listed on the balance sheet will be reduced by a write-down that captures the change in value of the acquired assets.

Goodwill Captures the Value of Other ________ That the Firm