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

  • share capital account
  • goodwill account checkmark
  • capital reserved account
  • general reverse account

The correct answer is: B

Explanation

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

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