If a company has goodwill on its books,the goodwill:
A)is amortized over 40 years or useful life,whichever is less.
B)is tested for impairment annually.
C)may have been internally created.
D)may be written up to fair value.

Question

Quizplus · Accepted Answer

Goodwill is tested for impairment annually, meaning that if its fair value is less than its carrying value, a write-down or impairment charge will be recognized. Goodwill is not amortized over a set period like other intangible assets. Goodwill may have been internally created or acquired through a business combination, but it cannot be written up to fair value under current accounting rules.

If a Company Has Goodwill on Its Books,the Goodwill