Multiple choice

Directions: Choose the correct option for the given question.

Which of the following methods is not used for calculating purchase consideration?

  1. Net Asset Value

  2. Share Exchange Method

  3. Net Payment Method

  4. None of these
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

All three listed methods are valid for calculating purchase consideration in business amalgamation: (1) Net Asset Value Method - values assets minus liabilities, (2) Net Payment Method - actual payment made, (3) Share Exchange Method - shares issued based on exchange ratio. Therefore 'None of these' (implying all are valid) is correct.

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