Accounting goodwill is measured and identified as the difference between the amount paid for a firm and

Question:

Accounting is measured and identified as the difference between the amount paid for a firm and the net fair value of the assets and liabilities acquired. This accounting is an attempt to quantify economic .
Required:
a. What is economic profit as it would be defined in finance or economics? Use a numerical example to illustrate the difference.
b. Why is accounting net income not the same as an economist’s determination of earnings, as measured from a shareholder’s perspective?
Goodwill
Goodwill is an important concept and terminology in accounting which means good reputation. The word goodwill is used at various places in accounting but it is recognized only at the time of a business combination. There are generally two types of...