Question

With respect to hire purchase and installment sale transactions, which of the following statement is incorrect?

A Under hire purchase system, hire purchaser will pay cost of purchased asset in installments

B Under hire purchase system, the ownership of the goods will be transferred by the hire vendor after payment of down payment (i.e. before first installment)

C Under installment system, ownership of the goods is transferred by owner on the date of delivery of goods

D Depreciation on hire purchased asset is claimed by hire purchaser

Practice Next

More Accounts Questions

SSL stands for:
A manufacturing company prepares a flexible budget for its production costs. At 60% capacity, its total cost is ₹6,00,000, including ₹2,40,000 fixed cost. ...
The balance of cash book shows
GeM is characterized by which of these three core elements?
A company has the following capital structure: Equity ₹40 lakh, Preference ₹10 lakh, Debt ₹20 lakh. Cost of equity = 15%, cost of preference = 10%, before-...
Unclaimed dividend is shown in the balance sheet under the head
Under SA 240, the auditor’s responsibility relates to identifying and assessing risks of material misstatement due to fraud. If a whistleblower informs the...
Which of the following is NOT a leature of budgetary control?
Deferred Tax Liabilities’ is shown under which of the following heads in a Balance sheet as per the format given in Companies Act, 2013?
A branch receives goods from the Head Office at an invoice price that includes a 25% markup on cost. If the invoice price of goods sent to the branch is ₹1...

Relevant for Exams:

Coal India Management Trainee
Coal India MT Legal
Coal India MT System
Coal India MT Civil

Hey! Ask a query

With respect to hire purchase and installment sale transactions, which of the following statement is incorrect?

Solution

More Accounts Questions

Relevant for Exams:

Hey! Ask a query

Please Register/Login