Goodwill

question 140

Multiple Choice

Goodwill

• A) is only recorded when generated internally.
• B) can be subdivided and sold in parts.
• C) can only be identified with the business as a whole.
• D) can be defined as normal earnings less accumulated amortization.

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Definitions:

Rates of Return

Financial returns or setbacks on an investment throughout a chosen timeframe, indicated as a percentage of the investment's original expenditure.

Future Value

The value of an existing asset at a future date based on an assumed rate of growth over time.

Compounded Annually

This term refers to the process of adding interest to the principal sum of a loan or deposit, or in other words, interest on interest, with the effects of compounding happening once per year.

Present Values

The value today of a future sum or series of cash payments, calculated using a particular rate of return, for the purpose of discounting and assessing investment options.