passwella.
Menu

WAEC Financial Accounting 2024 Question 34

Question 34

Purchase of Business

Purchased goodwill is purchase consideration less the value of

  1. A.gross identifiable assets.
  2. B.net identifiable assets.
  3. C.gross non-current assets.
  4. D.current assets.
Show the answer and explanation

Answer: B (net identifiable assets.)

Explanation

Goodwill is what is paid above the fair value of the net assets taken over.