Question 1

In case of Hire purchase system, Interest is not included in-

Accepted Answer

A)  Down payment
B)  Hire purchase price
C)  Intalment
D)  None of these A

Question 2

Total amount payable less its cash price is equal to_________  -

Accepted Answer

A)  Depreciation
B)  Interest
C)  Market Price
D)  Purchase Price B

Question 3

In case of purchase and sales of securities ex- interest -

Accepted Answer

A)  Interest is payable in addition to market price
B)  Market price includes interest also
C)  No separate calculation for interest is made
D)  The seller gets interest on the next interest date. A

Question 4

In pure single entry

Accepted Answer

A)  Purchase and sales book is kept
B)  Only cash book is kept
C)  All susidiary books are kept
D)  Certain subsidiary books are kept

Question 5

Under the Hire purchase system, goods are delivered to the hirer when -

Accepted Answer

A)  First Instalment is paid
B)  Agreement is signed
C)  Last instalment is paid
D)  None of these

Question 6

Interest on security is calculated on -

Accepted Answer

A)  It Face value
B)  Its Market price
C)  Its Purchase Price
D)  None of these

Question 7

Under hire-purchase system the amount of interest is charged to____________  Account

Accepted Answer

A)  Asset
B)  Purchaser
C)  Profit and Loss
D)  Seller

Question 8

In case of ex-interest transaction, the amount of interest is calculated for the following period.

Accepted Answer

A)  Upto the date of next interest payment
B)  For the whole year
C)  From the last date of interest payment till the date of transaction
D)  For full 6 months.

Question 9

By deducting cash price from the contract price of assets, the difference of the amount is called

Accepted Answer

A)  Original Price
B)  Sales price
C)  Interest
D)  Istalment

Question 10

Cash price of asset + Interest =_________price

Accepted Answer

A)  Contract
B)  Market
C)  After Depreciation
D)  Purchase

Question 11

At the end of the year, the interest paid and depreciation charged are transferred to the account

Accepted Answer

A)  Asset
B)  Profit and Loss
C)  Purchaser
D)  Seller

Question 12

Which of the following is not included in the hire purchase agreement ?

Accepted Answer

A)  Interest rate
B)  Instalment amount
C)  Methods for depreciation
D)  Number of Instalment

Question 13

While selling securities, brokerage is generally calculated on following price-

Accepted Answer

A)  Face value
B)  Sales price
C)  Average of face value and sales price.
D)  Book value

Question 14

The main difference between sale under Hire purchase agreement and sales under Installment system is regarding

Accepted Answer

A)  Delivery of the goods
B)  Ownership of the goods
C)  Sales price of the goods
D)  None of these

Question 15

Interest is calculated on____________  under hire purchase agreement.

Accepted Answer

A)  Cash Price
B)  Hire purchase price
C)  Balance of cash price outstanding at the beginning of instalment
D)  None of these

Question 16

In which of the following method of sales, if the purchaser can't pay the amount of instalment, the vendor can get the assets as return back ?

Accepted Answer

A)  Cash Method
B)  Sales or Return based sale
C)  Instalment system
D)  Hire purchase system

Question 17

Cost of Investment does not include

Accepted Answer

A)  Interset
B)  Brokerage
C)  Stamp Duty
D)  None of these

Question 18

Capital value in case of cum-interest purchase means -

Accepted Answer

A)  The total amount paid to broker as purchase price.
B)  Purchase price- Interest included + Brokerage
C)  Market price on the date of purchase
D)  Selling price + interest included

Question 19

In case of Hire purchases, the depreciation is calculated on -

Accepted Answer

A)  Hire purchase price
B)  Contract Price
C)  Cash price
D)  None of these

Question 20

The interest on fixed dates are received only on following securities :

Accepted Answer

A)  Equity shares of companies
B)  Government securities
C)  Shares of foreign companies
D)  preference share of companies.

Exam 1: Securities Brokerage, Interest Calculation, and Hire Purchase Agreements