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




Question 61 :
Refer to Q. No. 20. The interest for 1st instalment is

  1. ` 4,000
  2. ` 5,000
  3. ` 9,000
  4. None of the above
  

Question 62 :
Hire purchase price means amount payable by the hirer which consists of

  1. Cash Price + Interest
  2. Cash Price – Interest
  3. Cash Price + Down Payment
  4. Interest + Principal
  

Question 63 :
Under Instalment system purchaser becomes the owner of goods on

  1. Signing the agreement
  2. Payment of last instalment
  3. Payment of cash price
  4. None of the above
  

Question 64 :
Cash price is included in hire purchase price.

  1. TRUE
  2. FALSE
  

Question 65 :
Hire purchase price is the purchase price if full payment is made immediately.

  1. TRUE
  2. FALSE
  

Question 66 :
Under hire purchase agreement interest is charged on _____ cash price.

  1. Prepaid
  2. Actual
  3. Outstanding
  4. All of the above
  

Question 67 :
Hire purchase price is _____ than cash price.

  1. Lower
  2. Higher
  3. None of the above
  4. Flexible
  

Question 68 :
In hire purchase buyer becomes the owner of asset on signing the agreement.

  1. TRUE
  2. FALSE
  

Question 69 :
The person who sells the goods on hire purchase is a hire buyer.

  1. TRUE
  2. FALSE
  

Question 70 :
Cheaper items are not purchased on hire purchase basis.

  1. TRUE
  2. FALSE
  

Question 71 :
In instalment sale ownership is transferred on signing the agreement.

  1. TRUE
  2. FALSE
  

Question 72 :
Depreciation is charged on cash price.

  1. TRUE
  2. FALSE
  

Question 73 :
Under hire purchase system interest is charged on outstanding cash price.

  1. TRUE
  2. FALSE
  

Question 74 :
Refer to Q. No. 20. The hire vendor is

  1. X Ltd
  2. Y Ltd.
  3. Either X Ltd. or Y Ltd.
  4. None of them
  

Question 75 :
_____ _____ is initial payment.

  1. Cash Price
  2. Down Payment
  3. Interest
  4. H. P. Price
  

Question 76 :
Hire purchase price is equal to

  1. Cash price
  2. Cash Price – Interest
  3. Cash price + Interest
  4. None of the above
  

Question 77 :
Hire purchase instalment consists of

  1. Cash price
  2. Interest
  3. Part payment of cash price plus interest
  4. All of the above
  

Question 78 :
Under Hire purchase, instalment is treated as hire.

  1. TRUE
  2. FALSE
  
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