If goodwill decreases,the company records a loss and writes down the value of the goodwill.

Name: If goodwill decreases,the company records a loss and writes down the value of the goodwill.
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Question

Quizplus · Accepted Answer

A decrease in goodwill indicates that the company's assets are worth less than what was originally paid for them. As a result, the company must record a loss and reduce the value of the goodwill on their financial statements.

If Goodwill Decreases,the Company Records a Loss and Writes Down