Which of the Following Is Not a Method of Calculating

question 33

Multiple Choice

Which of the following is not a method of calculating goodwill?

• A)Capitalize excess earnings
• B)Discount the excess earnings for a limited number of years
• C)Capitalize total average earnings and subtract the fair value of net assets
• D)All of these are methods of calculating goodwill.

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Definitions:

Hairstylists

Professionals trained in the art of cutting, coloring, and styling hair to enhance or maintain a person's appearance.

Psychological Capital

A person's favorable mental condition, defined by confidence in one's own abilities, a positive outlook, aspirations for the future, and the capacity to recover from difficulties.

Large Bank

A financial institution that possesses significant assets, offers a wide array of services, and operates on a large scale, often internationally.

Well-Being

The state of being comfortable, healthy, or happy; an assessment of an individual's general health, happiness, and life satisfaction.