When the purchase consideration is lower ttan the net asset, the buyer has gained the...
FINANCIAL
JAMB 2016
When the purchase consideration is lower ttan the net asset, the buyer has gained the advantage of
- A. capital reserve
- B. revenue reserve
- C. net income
- D. net loss
Correct Answer: A. capital reserve
Explanation
Capital Reserve is a type of profit that is earned on capital transactions - an example would be the profit arising from the forfeiture of shares, sales of assets etc
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