Examlex
Which of the following methods of calculating interest is the most expensive?
Effective Tax Rate
The average rate at which an individual or corporation is taxed, calculated by dividing total taxes paid by the taxable income.
Cost Method
An accounting approach where investments are recorded at their original purchase cost, without adjustment for changes in market value.
Goodwill
An intangible asset that arises when a company acquires another company for a price higher than the fair value of its net identifiable assets.
Equity Method
A method of accounting in which an investor recognizes its share of the profits and losses of an investee that it influences but does not control.
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