Analysts do adjust corporate profits to exclude profit/losses from goodwill. This is because goodwill is not a tangible asset and can be subjective in its valuation, so it may not accurately reflect a company's true earnings. Therefore, most analysts exclude this from their calculations to get a more accurate picture of a company's profitability.

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Analysts

Question 57

Multiple Choice

Analysts

A) do not adjust corporate profits to exclude profit/losses from goodwill
B) do not consider the market as efficient
C) do not regard intangible accounting as full disclosure
D) do adjust corporate profits to exclude profit/losses from goodwill

Correct Answer: