Goodwill

Multiple Choice

Goodwill

A) is recorded when a business has a satisfied base of customers.
B) is defined as the excess of market value of a business's assets over the book value of that business's liabilities.
C) should be tested annually for impairment.
D) should be amortized over a period not to exceed 40 years.
E) write-offs are shown on the income statement as contra-revenue amounts.