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WAEC Financial Accounting 2026 Question 41

Question 41

Purchase of Business

A business is acquired at par when the purchase consideration

  1. A.equals the goodwill.
  2. B.equals the net assets.
  3. C.is greater than the goodwill.
  4. D.is greater than the liabilities.
Show the answer and explanation

Answer: B (equals the net assets.)

Explanation

At par means the price paid equals the value of the net assets taken over, so there is no goodwill.