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Financial Accounting - Questions & Answers for Competitive Exams | GkSeries

49. Under hire purchase system, the risk of loss is borne by _________.
  • [A] buyer.
  • [B] hirer.
  • [C] hire vendor.
  • [D] debtor.

Answer: Option [C]

50. Under hire purchase system who has the right of sell __________.
  • [A] buyer.
  • [B] hirer.
  • [C] hire vendor.
  • [D] none of the above.

Answer: Option [C]

51. Under hire purchase system, if installment is not paid the hire vendor has right to ___________.
  • [A] sell the goods.
  • [B] repossession of goods.
  • [C] repair the goods
  • [D] purchase the goods.

Answer: Option [B]

52. Hire purchase system is governed by ___________.
  • [A] Hire Purchase Act 1972.
  • [B] Hire Purchase Act 1973.
  • [C] Hire Purchase Act 1974.
  • [D] none of the above.

Answer: Option [A]

53. Under hire purchase system, the retail price of the articles is called _______
  • [A] MRP.
  • [B] wholesale price.
  • [C] retail price.
  • [D] none of the above.

Answer: Option [C]

54. The advance amount under hire purchase system is called __________.
  • [A] cash price.
  • [B] retail price.
  • [C] interest.
  • [D] down payment.

Answer: Option [D]

55. If the hire purchaser fails to make payment of any installment, it is called _______.
  • [A] default.
  • [B] repossession.
  • [C] sale.
  • [D] purchase.

Answer: Option [A]

56. The hire vendor takes away only a portion of the goods on which there is default of Installments it is called _________
  • [A] repossession .
  • [B] partial repossession.
  • [C] complete repossession.
  • [D] purchase.

Answer: Option [B]

57. In the books of hirer, for payment of installment hire vendor account will be ___________.
  • [A] debited.
  • [B] credited.
  • [C] rectified.
  • [D] reversed.

Answer: Option [A]

58. In the books of hirer, for interest due at the end of the year hire vendor account will be _______.
  • [A] debited.
  • [B] credited.
  • [C] rectified.
  • [D] reversed.

Answer: Option [B]

59. In the books of hirer, when the asset is repossessed, asset account will be ________.
  • [A] debited.
  • [B] credited.
  • [C] rectified.
  • [D] none of the above.

Answer: Option [B]

60. What is depreciation?
  • [A] Cost of a fixed asset.
  • [B] Cost of a fixed assets repair.
  • [C] the residual value of fixed asset.
  • [D] Portion of a fixed assets cost consumed during the current accounting period

Answer: Option [D]

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