Which of the following statements regarding goodwill is not correct?
A)Goodwill is not amortized.
B)Goodwill is tested annually for impairment.
C)Goodwill is written down if its value is found to be impaired.
D)Private companies amortize goodwill using the straight-line method over 20 years or less.

Question

Quizplus · Accepted Answer

For most companies,goodwill is not amortized but instead is tested annually for impairment and written down if its value is found to be impaired.Beginning in 2014,private companies were allowed to forgo annual impairment testing and instead amortize goodwill using the straight-line method over 10 years or less.

Which of the Following Statements Regarding Goodwill Is Not Correct