What Is Goodness-of-Fit? The term goodness-of-fit refers to a statistical test that determines how well sample data fits a distribution from a population with a normal distribution. Put simply, it hypothesizes whether a sample is skewed or represents the data you would expect to find in the actual population. Goodness-of-fit establishes the discrepancy between the
What Is Goods-in-Process? Goods-in-process is part of an inventory account on the balance sheet of a manufacturing company. It relates to partially completed goods that are somewhere in the manufacturing process and not yet ready for sale. Goods-in-process is also known as “work-in-process” or “work-in-progress.” Key Takeaways Goods-in-process is the cost of unfinished goods in
What Is a Good Student Discount? The term good student discount refers to an auto insurance policy discount available to young drivers who earn good grades in school. This discount assumes that young drivers who are responsible when it comes to their studies are more likely to be responsible drivers. As a result, they deserve
What Is Goodwill? Goodwill is an intangible asset that is associated with the purchase of one company by another. It represents value that can give the acquiring company a competitive advantage. Specifically, a goodwill definition is the portion of the purchase price that is higher than the sum of the net fair value of all
What Is a Goodwill Impairment? Goodwill impairment is an accounting charge that companies record when goodwill’s carrying value on financial statements exceeds its fair value. In accounting, goodwill is recorded after a company acquires assets and liabilities, and pays a price in excess of their identifiable net value. Goodwill impairment arises when there is deterioration
What Is the Gordon Growth Model (GGM)? The Gordon growth model (GGM) is a formula used to determine the intrinsic value of a stock based on a future series of dividends that grow at a constant rate. It is a popular and straightforward variant of the dividend discount model (DDM). The GGM assumes that dividends
What Is a Go-Shop Period? A go-shop period is a provision that allows a public company to seek out competing offers even after it has already received a firm purchase offer. The original offer then functions as a floor for possible better offers. The duration of a go-shop period is usually about one to two
What Is the Government Accounting Standards Board (GASB)? The Government Accounting Standards Board (GASB) is a private non-governmental organization that creates accounting reporting standards, or generally accepted accounting principles (GAAP), for state and local governments in the United States. Key Takeaways: The Government Accounting Standards Board (GASB) is a private non-governmental organization that creates accounting
What is a Government Actuary? A Government Actuary is an employee of the U.K. government who works for the Government Actuary’s Department (GAD). The GAD provides actuarial consulting services for the public sector at a set fee structure. It provides consulting on numerous actuarial and statistical topics including: pensions policy and regulation, occupational pensions, staff transfers, social security, insurance, healthcare financing and
What Is a Government Bond? A government bond is a debt security issued by a government to support government spending and obligations. Government bonds can pay periodic interest payments called coupon payments. Government bonds issued by national governments are often considered low-risk investments since the issuing government backs them. Government bonds issued by a federal
