Question : Net Assets + goodwill is
Option 1: Purchases consideration
Option 2: Total assets
Option 3: Capital reserve
Option 4: Current assets
Answer (1)
22nd Jan, 2024
Correct Answer: Purchases consideration
Solution : Answer = Purchases consideration
The sum of net assets and goodwill is termed as the purchase consideration in an acquisition. It represents the total value paid by the acquiring company to obtain the assets and goodwill of the acquired company. This amount reflects the consideration transferred in exchange for acquiring control over the acquired entity.
Net assets + Goodwill = Purchase consideration.
Hence, the correct option is 2.
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