Each instalment including down payment is treated as hire charges by the
Buyer
Seller
None of these
Q.2.
On sales of Rs.to A attrade discount, the sales account will be -
Debited by Rs. 1425
Credited by Rs. 1425
Credited by Rs. 1500
Debited by Rs. 1575
Q.3.
Which of the following statements is/are true?The IFRS Interpretations Committee is a forum for the IASB to consult with the outside world. 2 -The IFRS Foundation produces IFRSs. The IFRS Foundation is overseen by the IASB. 3 - One of the objectives of the IFRS Foundation is to bring about convergence of national accounting standards and IFRSs.
1 and 3 only
2 only
2 and 3 only
3 only
Q.4.
Under hire purchase system buyer becomes the owner
On payment of down payment
After receipts of goods
On payment of last instalment
On payment of first instalment
Q.5.
The amount paid at the time of entering the Hire-purchase transaction for the goods purchased is known as
Cash price
Down payment
First Instalment
Hire purchase price
Q.6.
Repairs to machinery is apportioned over the departments on the basis of
Number of machines in each department
Value of machine
Floor area of each machine
Rent rate of each machine
Q.7.
The cost of goods sold on hire purchase is transferred to
Sales a/c
Purchase a/c
Hire purchase a/c
Instalment a/c
Q.8.
What is the role of the IASB?
Oversee the standard setting and regulatory process
Formulate international financial reporting standards
Review defective accounts
Control the accountancy profession
Q.9.
A compound journal entry
has equal debits and credits
generally extends to several pages
does not require narration
all of these
Q.10.
Trial balance is prepared from
Ledger
Ledgers and journal
Ledger and cash book
None of these
Q.11.
Non trading institution prepare
Receipts and payments account
Income and expenditure account
Profit and Loss account
Both A & B
Q.12.
Which one of the following would not be valid grounds for a provision?
A company has a policy has a policy of cleaning up any environmental contamination caused by its operations, but is not legally obliged to do so.
A company is leasing an office building for which it has no further use. However, it is tied into the lease for another year.
A company is closing down a division. The Board has prepared detailed closure plans which have been communicated to customers and employees.
A company has acquired a machine which requires a major overhaul every three years. The cost of the first overhaul is reliably estimated at $120,000.
Q.13.
Under Hire-purchase agreement the buyer agrees to pay
Cash price only
Interest only
Cash price and interest
Q.14.
When the lessor receives payment, he credits---------account
Royalty
Hire purchase
Shortworkings
profit and loss
Q.15.
The hire purchaser can record the asset at its
Hire purchase price
Cash down price
None of these
Q.16.
Royalty account is
Personal a/c
Real a/c
Nominal a/c
Capital a/c
Q.17.
What is the main objective of accounting?
to show the value of shares in the company
to provide information on business activities to interested users
to help management to plan its business activities
to show managers the results of their departments
Q.18.
In the books of hire vendor the depreciation is charged
True
False
Q.19.
There is no difference between hire purchase and instalment system
True
False
Q.20.
Depreciation on hire purchased asset is claimed by
Hire vendor
Hire purchaser
Either the hire vendor or the hire purchaser as per the agreement between them
No depreciation is claimed till the last instalment is paid/received.
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