Answered

Welcome to Westonci.ca, the place where your questions find answers from a community of knowledgeable experts. Our platform provides a seamless experience for finding reliable answers from a knowledgeable network of professionals. Connect with a community of professionals ready to provide precise solutions to your questions quickly and accurately.

When the purchasing company bears the liquidation expenses it will debit the expenses to:_______

a. Vendor Company’s Account
b. Bank Account
c. Goodwill Account
d. Debtors Account

Sagot :

Answer:

c. Goodwill Account

Explanation:

In the case when the company is in liquidation and the purchasing company paid the liquidation expense as it is beared by them so here the expenses would be debited to the goodwill account

Therefore as per the given situation, the option c is correct as the liquidation expenses should be debited to the goodwill

So the rest of the options are wrong

We hope our answers were useful. Return anytime for more information and answers to any other questions you have. We hope you found what you were looking for. Feel free to revisit us for more answers and updated information. Westonci.ca is here to provide the answers you seek. Return often for more expert solutions.