An asset is classified as goodwill on the balance sheet when a company purchases an asset at greater than fair-market value.
QUESTION 10 / 11
An asset is classified as goodwill on the balance sheet when a company purchases an asset at greater than fair-market value.
According to GAAP, you can adjust goodwill when ______________
SELECT ONLY ONE
an asset is sold
stock prices go down
a new asset is purchased
stock prices go up
goodwill is impaired
Homework Answers
| According to GAAP, you can adjust goodwill when goodwill is impaired. |
| Goodwill is not subject to annual amortization. Goodwill is tested for impairment periodically and decline in value of Goodwill is recognized as Impairment loss |
| Option E goodwill is impaired is correct |
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