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The excess of value of assets over the purchase consideration on acquisition of a business...

Accounts - Principles of Accounts
WAEC 2012

The excess of value of assets over the purchase consideration on acquisition of a business is credited to

  • A. share capital account
  • B. goodwill account
  • C. capital reserved account
  • D. general reverse account
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Correct Answer: Option B
Explanation

In accounting, goodwill is the value of the business that exceeds its assets minus the liabilities.


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