**3. Vinod Limited sold patents costing Rs. 20,000 in Rs. 22,000. Treatment will be:**a) Less Rs. 22,000 from operating activities and add Rs. 20,000 in investing activitiesb) Add Rs. 2,000 to operating activities and deduct Rs. 22,000 from investing activitiesc) Less Rs. 20,000 from operating activities and add Rs. 20,000 in investing activitiesd) Less Rs. 2,000 from operating activities and add Rs. 20,000 in investing activities*Explanation:* The scenario involves selling patents and determining how it should be accounted for in financial statements. This transaction affects both operating and investing activities. Each option describes an adjustment to these activities based on the sale amount and the cost of the patents.

A patent can be referred to as an intellectual property which gives the owner a legal right to…

3. Vinod Limited sold patents costing Rs.20,000 in Rs.22,000. Treatment will be --- a) Less 22000 operating activities and add 20,000 in investing activities b) add 2000 operating activities and Less 22,000 in investing activities c) Less 20000 operating activities and add 20,000 in investing activities d) Less 2000 operating activities and add 20,000 in investing activities

3. Vinod Limited sold patents costing Rs.20,000 in Rs.22,000. Treatment will be --- a) Less 22000 operating activities and add 20,000 in investing activities b) add 2000 operating activities and Less 22,000 in investing activities c) Less 20000 operating activities and add 20,000 in investing activities d) Less 2000 operating activities and add 20,000 in investing activities

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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