In an Ordinary Annuity the Interest on a Yearly Investment

question 53

Multiple Choice

In an ordinary annuity the interest on a yearly investment starts building interest:

• A)At the beginning of the first period
• B)At the end of the first period
• C)During the first period
• D)After the second period ends
• E)None of these

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Definitions:

Partial Goodwill Method

A method of accounting for a business combination where goodwill is only recorded in relation to the parent's share of ownership in the subsidiary.

NCI

Non-controlling interest (NCI) refers to the portion of equity interest in a subsidiary not owned directly or indirectly by the parent company.

Fair Value

The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants.

Goodwill

An asset representing the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognised.