7. Companies are required to test their goodwill for impairment at least annually. Which of the following statements is true? Companies can first conduct a qualitative test on goodwill to determine whether an impairment is likely, and if it is, then they conduct the quantitative test (comparing fair value and book values of the goodwill). Companies can first conduct a qualitative test on goodwill to determine whether an impairment is likely, and if it is, then they conduct the quantitative test (comparing fair value and book values of the reporting unit). Companies are required to conduct the quantitative test on goodwill each year by comparing the fair value of the goodwill to the book value of the goodwill. Companies are required to conduct the quantitative test on goodwill each year by comparing the fair value of the reporting unit to the book value of the unit's net assets and liabilities