Which is NOT a characteristic of goodwill?
A) It can be sold.
B) It is never amortized.
C) It is tested for impairment annually.
D) It has indefinite life.

Question

Quizplus · Accepted Answer

Goodwill can indeed be sold as part of the sale of a business, but it is not a characteristic that distinguishes it from other intangible assets on its own. Goodwill is recognized in accounting when a company acquires another business for more than the fair value of its net identifiable assets. The other options (B, C, D) are characteristics of goodwill: it is not amortized but tested for impairment annually, and it is considered to have an indefinite life.

Which Is NOT a Characteristic of Goodwill