Hire Purchase And Installment Payment Accounts - Definition & Types of Goods On Hire Purchase - SS3 Accounting Past Questions and Answers - page 1
1
What is a hire purchase agreement?
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A
A legal document that transfers ownership of goods from the seller to the buyer
B
A financial agreement in which a person or business agrees to purchase goods on credit
C
A contract between two parties to exchange goods or services for money
D
A document that confirms the receipt of goods or services
2
Which of the following is an example of consumer goods that can be purchased on hire purchase?
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A
Machinery
B
Vehicles
C
Furniture
D
Equipment
3
Which of the following is an example of commercial goods that can be purchased on hire purchase?
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A
Appliances
B
Electronics
C
Vehicles
D
Clothing
4
What is the responsibility of the buyer in a hire purchase agreement?
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A
Insuring and maintaining the goods during the term of the agreement
B
Providing payment to the seller in full at the beginning of the agreement
C
Signing over ownership of the goods to the seller at the end of the agreement
D
Providing a list of potential buyers for the goods at the end of the agreement
5
When does the buyer fully own the goods in a hire purchase agreement?
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A
At the beginning of the agreement
B
After making the final payment
C
After making the first payment
D
When the seller confirms receipt of the payment
6
What is the difference between consumer goods and commercial goods in a hire purchase agreement?
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7
What is the buyer's responsibility during the term of a hire purchase agreement?
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