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If a sole proprietorship is purchased for cash, then?


Question

If a sole proprietorship is purchased for cash, then?

Options

A)
the purchaser debits his business purchase account with the consideration he pays
B)
all assets and liabilities must be bought
C)
goodwill results where value of assets
D)
the vendor debits his business purchase account with the considerstion he receives

The correct answer is A.


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