Which of the following is not true about goodwill?* Goodwill needs to be evaluated for impairment yearly Goodwill is treated as a tangible asset in accounting Goodwill is a result of purchasing a company for a price higher than the fair market value of the target company's net assets Goodwill can be comprised of things such as good reputation, loyal client base, and brand recognition

Auditing: A Risk Based-Approach (MindTap Course List)
11th Edition
ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter12: Auditing Long-lived Assets And Merger And Acquisition Activity
Section: Chapter Questions
Problem 32RQSC
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Which of the following is not true about goodwill?*

  • Goodwill needs to be evaluated for impairment yearly
  • Goodwill is treated as a tangible asset in accounting
  • Goodwill is a result of purchasing a company for a price higher than the fair market value of the target company's net assets
  • Goodwill can be comprised of things such as good reputation, loyal client base, and brand recognition 
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