WAEC Accounting 2014 Objective — Question 36

Question 36 of 50 from the West African Examinations Council (WAEC) Accounting 2014 Objective paper, with the correct answer and a full explanation.

When the purchase consideration exceeds the value of business, the difference is a

A. profit
B. discount
C. goodwillCorrect
D. reserve

Explanation

The difference between the purchase consideration and the value of the business is either goodwill (if purchase consideration is greater) or discount (if less).

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