Question 1

The advance amount under hire purchase system is called __________

Accepted Answer

A) cash price 
B) retail price 
C) interest 
D) down payment 
A) cash price 
B) retail price 
C) interest 
D) down payment

Question 2

The depreciation on an asset purchased through hire purchase should be:

Accepted Answer

A) should be straight line only 
B) based on the cost price of the asset only 
C) based on the total cost including interest 
D) no depreciation should be provide until the final payment is made 
A) should be straight line only 
B) based on the cost price of the asset only 
C) based on the total cost including interest 
D) no depreciation should be provide until the final payment is made

Question 3

Under hire purchase system, interest is calculated on _______

Accepted Answer

A) cash price 
B) hire purchase price 
C) mrp 
D) outstanding balance. 
A) cash price 
B) hire purchase price 
C) mrp 
D) outstanding balance.

Question 4

If the firm stops making repayments and the goods or assets are taken away from them as a result, this is known as:

Accepted Answer

A) cancellation 
B) forfeiture 
C) repossession 
D) annulment 
A) cancellation 
B) forfeiture 
C) repossession 
D) annulment

The advance amount under hire purchase system is called __________

The depreciation on an asset purchased through hire purchase should be:

Under hire purchase system, interest is calculated on _______

If the firm stops making repayments and the goods or assets are taken away from them as a result, this is known as:

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

The advance amount under hire purchase system is called __________

The depreciation on an asset purchased through hire purchase should be:

Under hire purchase system, interest is calculated on _______

If the firm stops making repayments and the goods or assets are taken away from them as a result, this is known as:

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