Liquidator of selling company's account
Business purchase account
Assets account
None of the above
Answer is Right!
Answer is Wrong!
The correct answer is C. Assets account.
When a purchasing company pays purchase consideration, it will be debited to the assets account of the purchasing company. This is because the purchase consideration is an asset that the purchasing company has acquired. The assets account will be increased by the amount of the purchase consideration.
The other options are incorrect. Option A is incorrect because the liquidator of the selling company’s account is not an asset of the purchasing company. Option B is incorrect because the business purchase account is not an asset account. Option D is incorrect because the purchase consideration is an asset that the purchasing company has acquired.