Which of the following statements regarding goodwill is false?
A) Goodwill indicates that a company has acquired strong and well- established companies.
B) Goodwill amortization amounts are often relatively small as compared to net income.
C) The periods over which goodwill can be amortized vary from country to country.
D) Current United States' generally accepted accounting principles (GAAP) allows for the amortization of goodwill to be up to 40 years.

Question

Quizplus · Accepted Answer

Goodwill does not indicate that a company has acquired strong and well-established companies. It is an intangible asset that represents the excess of the purchase price of a company over the fair value of its identifiable net assets.

Which of the Following Statements Regarding Goodwill Is False