WAEC Accounting 2016 Objective — Question 44
Question 44 of 50 from the West African Examinations Council (WAEC) Accounting 2016 Objective paper, with the correct answer and a full explanation.
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44. In the purchase of a business, a buyer has paid more than the value of the net assets of the business. The excess payment is referred to as A. bonus B. goodwill C. net profit D. premium
- A. bonus
- B. goodwillCorrect
- C. net profit
- D. premium
Explanation
When a buyer pays more than the value of the net assets of a business, the excess is called goodwill.
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