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WAEC Financial Accounting 2026 Question 37

Question 37

Purchase of Business

The price paid by the acquiring company in a business takeover is

  1. A.conversion fee
  2. B.premium
  3. C.purchase consideration
  4. D.goodwill
Show the answer and explanation

Answer: C (purchase consideration)

Explanation

The amount paid for a business taken over is the purchase consideration.