1. 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.

4. The hire purchaser can record the asset at its

A hire purchase price

B cash down price

C none of these.

5. Interest is charged on the amount

A outstanding

B paid

C none of these.

6. Assets are generally repossessed at a mutually agreed

A value

B current price

C none of these.

7. Under instalment payment system, the seller treats the transaction as a

A cash sale

B credit sale

C none of these.

8. 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)

9. 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