Question

The price payable by the purchasing company to selling company for taking over its business is called ___________.

• A. Accounting treatment
• B. Recording
• C. Purchase consideration
• D. None of the Above

Answer 1

Answer: (C)

Purchase consideration

Purchase consideration is the amount paid by the transferee company to the transferor company for the purchase if the business. Hence, the price payable by the purchasing company to selling company for taking over its business is called purchase consideration.