MCQ for CA Intermediate ACCOUNTING - Chapter 11 - HIRE PURCHASE AND INSTALLMENT SALE TRANSACTIONS

Sample Multiple Choice Questions (MCQ's) for CA Intermediate - Paper 1 - ACCOUNTING - Chapter 11: HIRE PURCHASE AND INSTALLMENT SALE TRANSACTIONS - For Practice relevant for May/November 23 Examinations

Q1.  The amount paid at the time of entering the hire-purchase transaction for the goods purchased is known as

  1. Cash price
  2. Down payment
  3. First instalment

Answer: 2

Q2.  Total interest on hire purchased goods is the difference between

  1. Hire purchase price and cash price
  2. Hire purchase price and down payment
  3. Cash price and first instalment

Answer: 1

Q3. Depreciation on hire purchased asset is claimed by 

  1. Hire vendor
  2. Hire purchaser
  3. Either the hire vendor or the hire purchaser as per the agreement between them

Answer: 2

Q4. The ownership of goods purchased under hire purchase is transferred only when

  1. Down payment is paid
  2. Outstanding balance is paid in full.
  3. Cash price and first instalment is paid

Answer: 2

Q5. Which method of recording Hire purchase transactions is not used in Hire vendor’s books?

  1. Sales method
  2. Interest suspense method. 
  3. Cash price method. 

Answer: 3

CA Intermediate ACCOUNTING - MCQ for Chapter 12 -   

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