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