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 on its own, but can only be acquired through the purchase of another company. Once recorded, goodwill is not amortized. Instead, it is subject to an annual impairment test to see if its value has declined. If the value has declined, the goodwill must be written down to its new, lower value.

Goodwill Is an Intangible Asset That Has Special Features