JAMB Accounting 2013 Objective — Question 37

Question 37 of 50 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2013 Objective paper, with the correct answer and a full explanation.

The purchase consideration that is lower than the net asset implies that, the buyer has gained the advantage of

A. net income
B. revenue reserve
C. capital reserveCorrect
D. net loss

Explanation

If purchase consideration is less than the net value of assets acquired, the difference is treated as a capital reserve.

Sign up free to unlock

Score tracking
Practice history
Saved questions
Progress dashboard
Personalized sessions
Weak-topic breakdown

…and/or go further with premium services and No Ads.

Create free account

More questions from Accounting 2013 Objective More Accounting past papers