Which of the following statements regarding goodwill is false?
A)Goodwill indicates that a company has acquired strong and well?established companies.
B)Current United States' generally accepted accounting principles GAAP) allow for the amortization of goodwill to be up to 10 years.
C)The periods over which goodwill can be amortized vary from country to country.
D)Goodwill amortization amounts are often relatively small as compared to net income.

Question

Quizplus · Accepted Answer

Goodwill indicates that a company has acquired strong and well-established companies. This statement is false because goodwill can also arise from the acquisition of companies that are not strong or well-established.

Which of the Following Statements Regarding Goodwill Is False