Which of the following is not true about goodwill ?
A) Goodwill must be written off over 20 years.
B) Goodwill must be checked for impairment at least annually.
C) The loss of key customers could impair the value of goodwill.
D) Goodwill does not have to be amortized.
E) Goodwill is shown as an asset on the balance sheet.

Question

Quizplus · Accepted Answer

Goodwill does not have to be written off over a specific time period. Instead, it must be checked for impairment at least annually and written down if its value has decreased. Goodwill does not have a predetermined amortization period like some other intangible assets.

Which of the Following Is Not True About Goodwill