B.COM AFM-1 (Accounts For Hire Purchase) MCQ's




Question 31 :
In hire purchase ownership is never transferred to the buyer

  1. TRUE
  2. FALSE
  

Question 32 :
There is no difference between hire purchase price and cash price.

  1. TRUE
  2. FALSE
  

Question 33 :
_____ _____ is the price at which goods are purchased today for full payment.

  1. Cash Price
  2. H. P. Price
  3. Outstanding price
  4. None of the above
  

Question 34 :
Interest in hire purchase transation is charged on cash price which is

  1. Full cash price
  2. Outstanding cash price
  3. Down payment
  4. None of the above
  

Question 35 :
Hire purchase price includes _____ and _____.

  1. Principal, Interest
  2. Down Payment, Interest
  3. Cash Price, Interest
  4. None of the above
  

Question 36 :
Hire purchase price is higher than cash price.

  1. TRUE
  2. FALSE
  

Question 37 :
Under Full Cash Price method the asset is recorded at

  1. Hire purchase price
  2. Cash price
  3. Down payment
  4. None of the above
  

Question 38 :
Depreciation is charged on asset at a certain rate on

  1. Down Payment
  2. Cash price
  3. Principal
  4. None of the above
  

Question 39 :
Amount paid at the time of taking delivery of goods is

  1. Cash payment
  2. Down payment
  3. Advance payment
  4. None of the above
  

Question 40 :
The last instalment in hire purchase includes

  1. Cash price only
  2. Interest only
  3. Cash price and interest
  4. None of the above
  

Question 41 :
Under the purchase system depreciation is provided on cash price.

  1. TRUE
  2. FALSE
  

Question 42 :
Hire purchase price is equal to cash price plus interest.

  1. TRUE
  2. FALSE
  

Question 43 :
Under hire purchase system depreciation is provided on hire purchase price.

  1. TRUE
  2. FALSE
  

Question 44 :
Depreciation is charged at a certain rate on _____ _____ of the asset.

  1. Down Payment
  2. Cash Price
  3. Principal
  4. None of the above
  

Question 45 :
Purchase of a machinery without making full payment immediately is called as

  1. Cash purchase
  2. On line purchase
  3. Hire purchase
  4. None of the above
  

Question 46 :
Cash price includes interest.

  1. TRUE
  2. FALSE
  

Question 47 :
Excess of H.P. price over cash price is _____.

  1. Interest
  2. Down Payment
  3. Cash Payment
  4. None of the above
  

Question 48 :
Cash price method is known as _____ _____ method.

  1. Asset Accrual Method
  2. None of the above
  

Question 49 :
The buyer of goods on H.P. basis is _____.

  1. Customer
  2. Buyer
  3. None of the above
  4. Hirer
  

Question 50 :
Initial amount paid on signing the agreement is called _____ _____.

  1. Cash Price
  2. H. P. Price
  3. Down Payment
  4. None of the above
  

Question 51 :
The seller can take back possession of the goods in case of default in payment.

  1. TRUE
  2. FALSE
  

Question 52 :
X Ltd. purchased a car from Y Ltd. on hire purchase basis. Cash price is ` 50,000 Initial payment ` 10,000, balance in four instalments with 10% interest. The hirer is

  1. X Ltd.
  2. Y Ltd.
  3. X and Y Ltd.
  4. None
  

Question 53 :
Under hire purchase agreement right of ownership is not passed on to the purchaser unless.

  1. Agreement is signed
  2. Last instalment is paid
  3. Down payment is made
  4. None of the above
  

Question 54 :
Hire purchase price = _____ _____.

  1. Down Payment, Interest
  2. Principal, Interest
  3. None of the above
  4. Cash Price, Interest
  

Question 55 :
Hire purchase price excludes interest.

  1. TRUE
  2. FALSE
  

Question 56 :
The seller gets the right to take back _____ of goods in case of default in payment.

  1. Replacement
  2. Possession
  3. None of the above
  4. Amount
  

Question 57 :
Cash price is the purchase price payable if full payment is made immediately.

  1. TRUE
  2. FALSE
  

Question 58 :
In hire purchase ownership is transferred on payment of _____ _____.

  1. Last Instalment
  2. first Instalment
  3. Agreement is signed
  4. Downpayment is made
  

Question 59 :
Refer to Q. No. 20. The cash price is

  1. ` 50,000
  2. ` 10,000
  3. ` 60,000
  4. None
  

Question 60 :
Under hire purchase system, depreciation is provided by hire purchaser on

  1. Cash price
  2. H.P. price
  3. Down payment
  4. None of the above
  
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