JAMB Accounting 2017 Objective — Question 23

Question 23 of 40 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2017 Objective paper, with the correct answer and a full explanation.

When the purchase consideration is lower than the net asset, the buyer has gained the advantage of

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

Explanation

When purchase consideration paid is lower than the net assets acquired, the business gains a capital reserve.

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