Answer:
The correct answer is The value of a business as a whole, over and above the value of its net identifiable assets.
Explanation:
Goodwill is an intangible asset that reflects the connections of a customer service business, reputation and other similar factors.
It shows the value of a company's reputation, which can affect its market situation, both positively and negatively.
If it affects positively, it is called goodwill. This is a fixed asset, an element of the company with prolonged value, not generally intended for sale.
However, goodwill can be characterized as something that can generate future profits for the company.
Answer: D - A disclosure note is required when the loss is remote and the amount can be reasonably estimated
Explanation:
A contingent liability is an obligation that might arise from an event that would occur in the future.
A contingent liability isn't disclosed when payment is remote.
A contingent liability is recorded when:
1. it is probable the event would occur.
2. there is a reasonable estimate the amount of the loss.
I hope my answer helps.
Answer:
Return on Total Assets = 10.2%
Explanation:
The Return on Total Assets (ROTA) of a company is a ratio of the measure of a company's earnings before income and taxes, relative to its total net assets. Simply put, it is the amount of money a company receives in a financial year, relative to its total assets. The formula for calculating ROTA is given as follows:
ROTA = ( EBIT) ÷ Total Assets
where:
EBIT = Earnings before income and taxes = net income = $32,750
Total Assets = $320,000
∴ ROTA = 32,750 ÷ 320,000 = 0.102
converting 0.102 to percentage, we multiply by 100
∴ ROTA = 0.102 × 100 = 10.2%
Answer:
0.1333
Explanation:
Given that,
Selling price = $5
Variable cost = $3
Annual sales = $20,000
Total sales = $60,000
Contribution margin:
= Selling price - Variable cost
= $5 - $3
= $2
Number of units sold:
= Annual sales ÷ Selling price
= $20,000 ÷ $5
= 4,000 units
Total contribution sales:
= Number of units sold × Contribution margin per unit
= 4,000 units × $2
= $8,000
Weighted contribution:
= Total contribution sales ÷ Total sales
= $8,000 ÷ $60,000
= 0.1333
Answer:
c. The Avengers: Age of Ultron; $138.9
Explanation:
Spider Man 3's opening-weekend revenue in 2000 dollars = $151.1 million / 1.134 = $135.71 million
The Avengers: Age of Ultron's opening-weekend revenue in 2000 dollars = $191.2 million / 1.376 = $138.95 million
The Avengers had a larger opening weekend revenue in both nominal and 2000 dollars.
