- State the nature of hire purchase agreement. 2. State para 4 of AS–19 in respect of hire purchase accounting. 3. Each instalment including down payment (if any) is treated as hire charges by the
A buyer
B seller
C none of these.
- The hire purchaser can record the asset at its
A hire purchase price
B cash down price
C none of these.
- Interest is charged on the amount
A outstanding
B paid
C none of these.
- Assets are generally repossessed at a mutually agreed
A value
B current price
C none of these.
- Under instalment payment system, the seller treats the transaction as a
A cash sale
B credit sale
C none of these.
- Minimum lease payments are :
(i) payments over the lease term, the lessee is to make
(ii) contingent rent
(iii) any residual value guaranteed by the lessee.
Which of the following is correct ?
A (i), (ii) and (iii)
B (i) and (iii)
C (i) and (ii)
- Gross investment in the lease is the aggregate of the
A minimum lease payments under finance lease from the stand point of the lessor
B minimum lease payments under finance lease from the stand point of the lessor and any guaranteed residual value accruing to the lessor
C minimum lease payments under finance lease from the stand point of lessor and any unguaranteed residual value accruing to the lessor