Question 1

On the balance sheet of a company, the value of the asset bought through hire purchase will appear as:

Accepted Answer

A) cost less depreciation to date less amount owing on hire purchase less interest owing 
B) cost less amounts owing on hire purchase 
C) cost less depreciation to date less amount owing on hire purchase 
D) cost less depreciation to date 
A) cost less depreciation to date less amount owing on hire purchase less interest owing 
B) cost less amounts owing on hire purchase 
C) cost less depreciation to date less amount owing on hire purchase 
D) cost less depreciation to date D

Question 2

The interest charged on the hire purchase should appear in the profit and loss account in what manner?

Accepted Answer

A) the total interest levied should be divided equally over the total period the for purchase agreement 
B) the interest charged in that period only should be included 
C) interest should instead be capitalised on the balance sheet 
D) interest should be apportioned in proportion to the repayment totals 
A) the total interest levied should be divided equally over the total period the for purchase agreement 
B) the interest charged in that period only should be included 
C) interest should instead be capitalised on the balance sheet 
D) interest should be apportioned in proportion to the repayment totals B

Question 3

The act of buying an asset without having to make full payment in the immediate future is known as:

Accepted Answer

A) hire purchase 
B) finance lease 
C) operating lease 
D) sale and leaseback 
A) hire purchase 
B) finance lease 
C) operating lease 
D) sale and leaseback A

Question 4

Installment system is governed by _______

Accepted Answer

A) hire purchase act 
B) sale of goods act 
C) installment act 
D) properties registration act 
A) hire purchase act 
B) sale of goods act 
C) installment act 
D) properties registration act

Question 5

Under hire purchase system the buyer is called _________

Accepted Answer

A) buyer 
B) hirer 
C) hire vendor 
D) debtor. 
A) buyer 
B) hirer 
C) hire vendor 
D) debtor.

Question 6

When an asset is acquired on hire purchase system, the asset account is debited with _______ of the assets in the books of the hire purchaser.

Accepted Answer

A) hire purchase price 
B) cash price 
C) instalment price 
D) none of these 
A) hire purchase price 
B) cash price 
C) instalment price 
D) none of these

Question 7

The depreciation in the books of buyer is charged on _________

Accepted Answer

A) hire purchase price 
B) market price 
C) total instalment amount 
D) cash price 
A) hire purchase price 
B) market price 
C) total instalment amount 
D) cash price

Question 8

Hirer charges depreciation on:

Accepted Answer

A) hire purchase price 
B) cash price 
C) lower of the two 
D) none of these 
A) hire purchase price 
B) cash price 
C) lower of the two 
D) none of these

Question 9

What is transferred to Hirer under hire purchase system:

Accepted Answer

A) ownership of assets 
B) possession of asset 
C) ownership and possession of asset 
D) none of these 
A) ownership of assets 
B) possession of asset 
C) ownership and possession of asset 
D) none of these

Question 10

Balance of realization A/c is transferred to the capital A/c of the partners in:

Accepted Answer

A) capital ratio 
B) profit sharing ratio 
C) interest ratio 
D) equally 
A) capital ratio 
B) profit sharing ratio 
C) interest ratio 
D) equally

Question 11

Under which system, ownership is transferred on payment of final installment

Accepted Answer

A) installment system 
B) credit system 
C) hire purchase system 
D) cash system 
A) installment system 
B) credit system 
C) hire purchase system 
D) cash system

Question 12

Under hire purchase system who has the right of sell __________

Accepted Answer

A) buyer 
B) hirer 
C) hire vendor 
D) debtor 
A) buyer 
B) hirer 
C) hire vendor 
D) debtor

Question 13

Which of the following does not give a difference between a hire purchase and a normal purchase?

Accepted Answer

A) timing of payment for asset 
B) legal ownership of asset 
C) quality of asset purchased 
D) total cost of asset. 
A) timing of payment for asset 
B) legal ownership of asset 
C) quality of asset purchased 
D) total cost of asset.

Question 14

The amount of interest is credited by the buyer to ________

Accepted Answer

A) hire purchase account 
B) hire vendor account 
C) interest account 
D) cash account 
A) hire purchase account 
B) hire vendor account 
C) interest account 
D) cash account

Question 15

Under hire purchase system, the agreement can be _________

Accepted Answer

A) renewed 
B) registered 
C) terminated 
D) endorsed. 
A) renewed 
B) registered 
C) terminated 
D) endorsed.

Question 16

Ownership of goods under hire purchase agreement is transferred at the time of:

Accepted Answer

A) payment of down payment 
B) payment of first instalment 
C) payment of last instalment 
D) none of the above 
A) payment of down payment 
B) payment of first instalment 
C) payment of last instalment 
D) none of the above

Question 17

The Sale of Goods Act is applicable in:

Accepted Answer

A) credit purchases 
B) cash purchases 
C) cash sales 
D) none of these 
A) credit purchases 
B) cash purchases 
C) cash sales 
D) none of these

Question 18

The decision is Garner Vs Murray was given in:

Accepted Answer

A) 1904 
B) 1905 
C) 1933 
D) 1804 
A) 1904 
B) 1905 
C) 1933 
D) 1804

Question 19

Under hire purchase system, the retail price of the articles is called ________

Accepted Answer

A) mrp 
B) wholesale price 
C) retail price 
D) cash price 
A) mrp 
B) wholesale price 
C) retail price 
D) cash price

Question 20

At the time of dissolution all the assets of firm are transferred to the realization A/c:

Accepted Answer

A) market value 
B) book value 
C) cost value 
D) bale value 
A) market value 
B) book value 
C) cost value 
D) bale value

On the balance sheet of a company, the value of the asset bought through hire purchase will appear as:

The interest charged on the hire purchase should appear in the profit and loss account in what manner?

The act of buying an asset without having to make full payment in the immediate future is known as:

Installment system is governed by _______

Under hire purchase system the buyer is called _________

When an asset is acquired on hire purchase system, the asset account is debited with _______ of the assets in the books of the hire purchaser.

The depreciation in the books of buyer is charged on _________

Hirer charges depreciation on:

What is transferred to Hirer under hire purchase system:

Balance of realization A/c is transferred to the capital A/c of the partners in:

Under which system, ownership is transferred on payment of final installment

Under hire purchase system who has the right of sell __________

Which of the following does not give a difference between a hire purchase and a normal purchase?

The amount of interest is credited by the buyer to ________

Under hire purchase system, the agreement can be _________

Ownership of goods under hire purchase agreement is transferred at the time of:

The Sale of Goods Act is applicable in:

The decision is Garner Vs Murray was given in:

Under hire purchase system, the retail price of the articles is called ________

At the time of dissolution all the assets of firm are transferred to the realization A/c:

Accounting and Financial Concepts and Principles

Accounting Concepts and Principles

Accounting and Financial Management for Branches and Head Offices

Accounting for Branches and Partnerships

Accounting for Partnerships: Drawings, Goodwill, and Retirement

Partnership and Dissolution: Understanding the Ins and Outs of a Business Partnership

Hire Purchase Agreements and Company Accounting

Shares, Reserves, and Dividends in Company Law

Issuing and Cancelling Shares and Debentures in a Company

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Exam 7: Hire Purchase System and Dissolution of Assets in a Firm

On the balance sheet of a company, the value of the asset bought through hire purchase will appear as:

The interest charged on the hire purchase should appear in the profit and loss account in what manner?

The act of buying an asset without having to make full payment in the immediate future is known as:

Installment system is governed by _______

Under hire purchase system the buyer is called _________

When an asset is acquired on hire purchase system, the asset account is debited with _______ of the assets in the books of the hire purchaser.

The depreciation in the books of buyer is charged on _________

Hirer charges depreciation on:

What is transferred to Hirer under hire purchase system:

Balance of realization A/c is transferred to the capital A/c of the partners in:

Under which system, ownership is transferred on payment of final installment

Under hire purchase system who has the right of sell __________

Which of the following does not give a difference between a hire purchase and a normal purchase?

The amount of interest is credited by the buyer to ________

Under hire purchase system, the agreement can be _________

Ownership of goods under hire purchase agreement is transferred at the time of:

The Sale of Goods Act is applicable in:

The decision is Garner Vs Murray was given in:

Under hire purchase system, the retail price of the articles is called ________

At the time of dissolution all the assets of firm are transferred to the realization A/c:

Accounting and Financial Concepts and Principles

Accounting Concepts and Principles

Accounting and Financial Management for Branches and Head Offices

Accounting for Branches and Partnerships

Accounting for Partnerships: Drawings, Goodwill, and Retirement

Partnership and Dissolution: Understanding the Ins and Outs of a Business Partnership

Hire Purchase Agreements and Company Accounting

Shares, Reserves, and Dividends in Company Law

Issuing and Cancelling Shares and Debentures in a Company

Filters