Goodwill represents A. management's estimate of the value of the firm's "unidentified" intangible assets. B. the difference between the acquisition value of an acquired business and the fair value of its identifiable net assets. C. the difference between the acquisition value of an acquired business and the book value of its identifiable net assets. D. the sum of the acquisition value of an acquired business and the fair value of its identifiable net assets. What is a creditor's objective in performing an analysis of financial statements? A. To decide whether the borrower has the ability to repay interest and principal on borrowed funds. B. To determine if the firm would be a good place to obtain employment. C. To determine the company's taxes for the current year. D. To determine whether an investment is warranted by estimating a company's future earnings stream On January 1, 2010, oriental Fragrances Company issues $1,000,000 face value, five-year bonds with annual interest payment of $62, 500 to be paid each December 31. The market interest rate is 6.0 percent. Using the effective interest rate method of amortization, Oriental Fragrances is most likely to record: A. An interest expense of $62, 500 on its 2010 income statement. B. A liability of $1, 010, 531 on December 31, 2010 balance sheet. C. A liability of $1,008, 663 on December 31 2010 balance sheet. D. A $60, 632 cash outflow from operating activity on the 2010 statement of cash flows. E. A $60, 632 cash outflow from financing activity on the 2010 statement of cash flows