If the value of a company decreases after it is acquired: Group of answer choices retained...
If the value of a company decreases after it is acquired:
Group of answer choices
retained earnings is decreased for the loss.
goodwill is impaired.
goodwill is amortized.
no change is made until it is sold.
allowance for goodwill is increased.
Homework Answers
If the value of a company is decreases after it is acquired it means the customers are not happy with service of new management.
Group Answer Choices are as below,
Retained earnings is decreased for the loss: This is not a correct answer because value of company decreases it doesn’t means the company have incurred the losses
Goodwill is amortized: Goodwill can be amortized on the basis of life of the purchase goodwill so this is also not a correct option
No Changes is made until it is sold: No this option is also not correct because goodwill of any company is always increase and decreases on the basis of sales, revenue and market condition.
Goodwill is impaired: This option is correct because company is acquired and the value of the company is decreases it means Goodwill of the company is impaired.
So Answer = Option 2 = Goodwill is impaired
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If the value of a company decreases after it is acquired:
Group of answer choices
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