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If the purchase price exceeds the net assets of a company, the excess amount is debited ...

If the purchase price exceeds the net assets of a company, the excess amount is debited to________________
Take Free Practice Test On 2026 JAMB UTME, Post UTME, WAEC SSCE, GCE, NECO SSCE
  • A Cash account
  • B Purchase account
  • C Goodwill account
  • D Sales account
Correct Answer: Option C
Explanation:
Goodwill is the excess of purchase consideration over the total value of the business

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