In theory, the risk-free rate is the minimum return an investor expects for "delaying his consumption". The investor will not accept any additional risk unless the potential rate of return…
Audit risk means the risk that the auditor might give an inappropriate audit opinion that Financial Statements are free from material misstatements when in fact the financial statements are materially…
RETURN ON INVESTMENT ROI compares the profits of an investment compared to the cost of the investment to determine gains. RETURN ON CAPITAL EMPLOYED ROCE looks at earnings before interest…
Q. We are setting up a factory of scooters, the scooters in this factory are sold for ₹1 lakh. A Maintenance Contract for five years is also given for ₹50,000.…
This is one of the most commonly asked questions of all time, and irrespective of domain. It is as important as the "Tell me something about yourself question". You must…
It means that the company has acquired other entities for a consideration higher than Fair Market Value of Net Assets. Goodwill does not measure synergy, it measures how much I…
Goodwill arises when a company acquires another entire business. The amount of goodwill is the purchase consideration of the business minus the fair market value of the net assets that…