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3 years ago

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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According to the aggregate demand curve, when the aggregate price level _____, the quantity of aggregate output _____. rises; de

iren2701 [21]

Answer:

rises; demanded falls

Explanation:

The aggregate demand curve exhibits a negative relationship between aggregate price levels and aggregate output demanded. If aggregate price levels falls, aggregate output demanded rises and if aggregate price levels rises, aggregate output demanded falls.

The aggregate demand curve is negatively sloped.

Please check the attached image for a graph of the aggregate demand curve.

I hope my answer helps you

3 0

3 years ago

An employee earns $24 per hour and 1.5 times that rate for all hours in excess of 40 hours per week. Assume that the employee wo

ANTONII [103]

Answer:

Gross pay for the week is $1,500

Net pay for the week is $1,043

Explanation:

The gross pay is computed thus:

Normal rate pay 40 hrs*$24 =$960

Above normal pay(55-40)*$24*1.5 =$540

Gross pay $1,500

Deductions:

Social security(6.0%*$1,500) ($90)

Medicare(1.5%*$1,500) ($22.5)

Federal income tax ($345)

Net pay for the week $1,043

The net pay for the week is gross pay less social security tax,medicare as well as the federal income tax,$1043 is the employee net pay for the week

4 0

3 years ago

Because risk is associated with the potential for higher profits, businesspersons are motivated to choose organizational forms t

avanturin [10]

Answer:

The correct answer is A. True.

Explanation:

Risk management models are a great tool to anticipate and prevent possible losses that could occur when investing a certain capital, implementing appropriate precautionary measures; Therefore, organizations and investors that have a culture of risk, create a competitive advantage over others, by assuming assessed risks, gain experience in risk management, anticipate adverse changes, protect or cover their investments in advance and obtain higher profits by taking greater risks.

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3 years ago

Emporia Corporation is a lessee with a capital lease. The asset is recorded at $810,000 and has an economic life of 8 years. The

Doss [256]

Answer:

The amount of depreciation expense the lessee should record for the first year of the lease is $108,000

Explanation:

To calculate the depreciation expense for each year the first thing you have to do is to substruct from the initial value the fair value at the end fo the lease, obtaining this way the depreciable amount.

For this case it would be:

$810,000 - $270,000= $540,000

Then you have to divide the depreciable amount by the years of the term the lease.

$540,000/5= $108,000

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3 years ago

if business owners want to maximize the value of the company, they should invest in projects that have the .

Komok [63]

Answer:

if business owners want to maximize the value of the company, they should invest in projects that have the greatest value added.

6 0

2 years ago