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SashulF [63]
3 years ago
15

What is goodwill in a business sale and why is it amortized in the business financial statements

Business
1 answer:
astra-53 [7]3 years ago
7 0

Answer:

See below

Explanation:

Goodwill arises when is a business is acquired as a going concern. It is an intangible asset of a business. Goodwill represents the value of a company's customer base, its location, any patents, and the brand name. It consists of the value of suppliers, customers, and employee relationships that facilitates the smooth running of the business.

The value of goodwill is the difference between the purchase price and the net cost of its tangible and other intangible assets of a business. Amortization of goodwill means spreading the cost of goodwill to several financial years.

Goodwill is amortized because the business benefits from the goodwill for many years.  In other words, the expenditure on goodwill will profit the company in more than one financial year. As per the matching principle, expenses and incomes should be recognized in the period they occur. As benefits will be enjoyed in many years, the expenses should also be spread in similar years.

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Why are brand names and advertising important features of monopolistic​ competition? A. Both of these techniques are needed to c
GenaCL600 [577]

Answer:

B. Both of these techniques can be used to increase the demand for the product.

Explanation:

A catchy brand name and adequate marketing of a product plays a vital role in the relative demand of that product. Coca cola for example has properly advertised its products for decades now and when one thinks of beverage, you think Coke. It's been embedded in ones mind and that is the advantage of proper advertising and proper brand naming.

7 0
3 years ago
Equally weighted indexes do not correspond to buy and hold portfolio strategies. true false question. true false
Svetllana [295]

Equally weighted indexes do not correspond to buy and hold portfolio strategies. this statement is true.

An index is a measure or measure of something. In finance, it usually refers to a statistical measure of changes in the stock market. For financial markets, stock and bond market indices consist of hypothetical portfolios of securities that represent a particular market or segment thereof.

An index is a list of words or phrases and clues to where useful material about that heading can be found in a document or collection of documents. Examples include an index on the spine of a book or an index that serves as a library catalog.

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4 0
1 year ago
Melissa is a very good middle manager. However, she has for a very long time wanted to open her own business. Which of Melissa's
mash [69]

Melissa's characteristics that are not consistent with entrepreneurship is that Melissa tends to put things off until later.

<h3>What is entrepreneurship?</h3>

Entrepreneurship refers to the activity of setting up a business that takes financial risks in the hope of profit.

The missing options in the questions are

  • Melissa has high self-confidence.
  • Melissa tends to put things off until later.
  • She is untroubled by uncertainty.
  • She has a high need to achieve.
  • She has a high energy level.

Melissa is a very good middle manager. However, she has for a very long time wanted to open her own business. Melissa's characteristics that are not consistent with entrepreneurship are she tends to put things off until later.

Therefore, B is the correct option.

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5 0
2 years ago
You are now 20 years of age and decide to save $100 at the end of each month until you are 65. If the interest rate is 9.2%, how
anyanavicka [17]

Answer:

FV= $804,326.91

Explanation:

Giving the following information:

Monthly deposit (A)= $100

Interest rate (i)= 0.092/12= 0.0077

Number of periods= 45*12= 540 months

<u>To calculate the future value, we need to use the following formula:</u>

FV= {A*[(1+i)^n-1]}/i

A= monthly deposit

FV= {100*[(1.0077^540) - 1]} / 0.0077

FV= $804,326.91

5 0
3 years ago
Problems determining authority and responsibility, poor response time, and poor integration are disadvantages of: Group of answe
jek_recluse [69]

Problems determining authority and responsibility, poor response time, and poor integration are disadvantages of The Functional Organization.

The Functional Organization is a type of organizational system which operates according to the principle of specialization in role and function.

  • In project management, many types of organizations exist and are chosen.
  • The Functional Organization works by division into departments and sub-sections where the role and function of the specific department stand defined and stipulated.
  • A functional manager has a group of employees working under their supervision and authority.
  • Problems determining authority and responsibility, poor response time, and poor integration are more than likely and entirely possible to arise in this organizational system.

Therefore, problems determining authority and responsibility, poor response time, and poor integration are disadvantages of The Functional Organization.

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3 0
2 years ago
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