Recorded goodwill is considered to exist unless impaired.

Question

Quizplus · Accepted Answer

Goodwill is considered as an intangible asset in the financial statements of a company. Recorded goodwill is not subjected to amortization, and the value of goodwill is reviewed for impairment. The company recognizes goodwill impairment if the carrying amount exceeds the fair value. Unless the goodwill is impaired, it is considered to exist in the financial statements of the company. Therefore, the statement is true, and the answer is A.

Recorded Goodwill Is Considered to Exist Unless Impaired