If the purchase price exceeds the net assets of a company, the excess amount is...
FINANCIAL
JAMB 2018
If the purchase price exceeds the net assets of a company, the excess amount is debited to________________
- A. Cash account
- B. purchase account
- C. goodwill account
- D. sales account
Correct Answer: C. goodwill account
Explanation
Goodwill is the excess of purchase consideration over the total value of the business
Post an Explanation Or Report an Error
If you see any wrong question or answer, please leave a comment below and we'll take a look. If you doubt why the selected answer is correct or need additional more details? Please drop a comment or Contact us directly. Your email address will not be published. Required fields are marked *