--%>

Average Profit Method in goodwill

Average Profit Method: (Goodwill method): The profit earned by an organization throughout previous accounting periods on an average basis is termed as average profit. Goodwill is computed on the basis of average profit due to prospect expectations of earning capacity of the organization.

   Related Questions in Financial Accounting

  • Q : Account A structure for showing the

    A structure for showing the effect of market events on a particular asset, liability, equity, earnings, or expense. The effects are measured in terms of dollars. The account looks like as a collection point in the meanwhile the processing of all the transactions involving the balance sheet or inc

  • Q : Incremental cash flows of capital

    Describe what you mean by the incremental cash flows of a capital project.

  • Q : Advanced Accounting-Consolidated

    I have worked the problem. I need to know if it is correct. If not, what I'm missing.

  • Q : Interference of two light waves Find

    Find and make a graph of the light intensity distribution at the interference between 2 laser beams. The data parameter are : Question Each beam has a equal diameter of 20 micro meter The angle

  • Q : Standard costing is a separate system

    Wheather it is correct or not that standard costing is a separate system in accounting?

  • Q : Costs of hedging through forward

    Discuss and compare the costs of hedging through the forward contract and the options contract.

  • Q : Relative and absolute purchasing power

    Explain about the purchasing power parity, both the relative and absolute versions. List the things which results in the deviations from purchasing power parity?

  • Q : Matlab Applications in Control System

    Student faces a lot of difficulties in Matlab control system assignments and topics. If you are also having same issues and problems then www.tutorsglobe.com is the best available solution for you. We have highly skilled and experienced tu

  • Q : Quick establishment of the interest

    If cost advantage of the interest rate swaps might likely be arbitraged away within the competitive markets, what other explanations exists in order to describe quick establishment of interest rate swap market?

  • Q : Historical Cost of Inventory What is

    What is the Historical Cost of Inventory?