Mario's Pizza has been suffering financial difficulties due to new local competition. They have decided to downsize and leave their premises of 15 years. Mario's Pizza has the following receipts: 1. $150,000 from pizza sales; 2. A gain of $12,000 from the sale of old delivery vehicles at a price greater than amount owed under the lease; 3. Proceeds from the sale of its pizza bar to a shopping centre (from which they now lease a smaller shop). Which of the receipts will be treated as capital receipt? O i, ii and iii O ii O iii ii and iii

Mario's Pizza has been suffering financial difficulties due to new local competition. They have decided to downsize and leave their premises of 15 years. Mario's Pizza has the following receipts: 1. $150,000 from pizza sales; 2. A gain of $12,000 from the sale of old delivery vehicles at a price greater than amount owed under the lease; 3. Proceeds from the sale of its pizza bar to a shopping centre (from which they now lease a smaller shop). Which of the receipts will be treated as capital receipt? O i, ii and iii O ii O iii ii and iii

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Which of the following are typical prevention costs? (Check all that apply.) Multiple select question. Quality circles Statistical process control Depreciation of test equipment Debugging software errors
3
Make a critique about how to use COSO to Assess IT Controls
Inspector expenses and other expenses that are designed to ensure quality or uncover defects are examples of prevention costs. ture or false
Assuming a lack of internal control in a client's system, the risk of material misstatement is known as? O Inherent risk Client risk O Detection risk O Audit risk
A4
What is the relationship between Evidence and Detection Risk?
What is billing (or vendor) fraud?
Compare and contrast the difference between the retrospective analytics approachand the predictive analytics approach to data analytics.
Which of the following is not a principle relating to risk assessment? a. Identifies and analyses risks and respond to changes b. Designing the information systems c. Specifies objectives with sufficient clarity d. Considers the potential for fraud in assessing risks
Define risk of material misstatement.
Mr. Arvin Khan started his own consulting firm, ‘Arvin Consulting’ on April 1, 2019. The trial balance before adjustment on June 30, 2019, is as follows: Arvin Consulting’Trial Balance June 30, 2019 Number Account Titles Debit Credit 1 Cash Tk.3,96,000 2 Supplies 33,000 3 Prepaid Insurance 60,000 4 Office Furniture 75,000 5 Unearned Revenue Tk.74,000 6 Mortgage Payable 2,50,000 7 Capital 4,05,000 8 Drawing 50,000 9 Service Revenue 2,25,000 10 Rent Expense 36,000 11 Salaries Expense 2,10,000 12 Utility Expense 94,000 9,54,000 9,54,000 Other information: (1) Insurance policy is for 1 year. (2) Account on June 30 shows Tk. 10,000 of supplies on hand (3) Annual Depreciation is Tk.12,000 on Furniture. (4) Unearned revenue of Tk. 30,000 was earned prior to June 30, (5) Salaries of Tk. 20,000 were unpaid at June 30. (6) Mortgage…