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]