--%>

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 : Theory of the comparative advantage How

    How theory of the comparative advantage relates to the currency swap market?

  • Q : Review the accounting cycle the

    Assignment: The purpose of this assignment is to review the accounting cycle--the procedures that businesses normally use to record transactions during the year and prepare financial statements at the end of the year.  The accounting cycle is discussed in Chapter 3 of your textbook. &nb

  • Q : Advance methods which are used in banks

    What are the advance methods which are used in banks presently?

  • Q : Balance sheet A listing of the

        A listing of the liabilities, assets, and equity of an entity at a point in time, the end of a month, or quarter, or year. It is one of the four financial statements required in a full financial report. The balance sheet gives the reader what the entity owns (assets)

  • Q : Appropriated retained earnings The

    The portion of retained earning that is not available for dividends. To appropriate retained earnings, the company must record the partitioning of retained earnings. The company can use appropriated retained earnings for contingencies or big projects. Appropriating retained earning does not invol

  • Q : Money how much money do i have to earn

    how much money do i have to earn monthly?

  • 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 : Retail Invoice versus Tax Invoice

    Explain the difference between Retail Invoice vs. Tax Invoice?

  • Q : Contingent Liabilities Explain the term

    Explain the term Contingent Liabilities?

  • Q : MONEY MEASUREMENT CONCEPT DESCRIBE THE

    DESCRIBE THE ADVANTAGES AND DISADVANTAGES OF MONEY MEASUREMENT CONCEPT