The Difference Between the Purchase Price of a Company and the Net

question 69

Multiple Choice

The difference between the purchase price of a company and the net value of the tangible assets is called

• A) Asset value
• B) Profit
• C) Goodwill
• D) Liquidation value

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Definitions:

Capital

The wealth, either financial or tangible, that is used in the creation of more wealth, such as money or assets owned by an individual or organization.

Ledger

A comprehensive accounting book that keeps track of all financial transactions systematically.

Financial Statements

Documents that outline the financial activities and condition of a business, including the income statement, balance sheet, and cash flow statement.

Company Accounts

Financial records that detail the financial activities and condition of a business.