Hire Purchase and Installment Sale Transactions Quiz
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Hire Purchase and Installment Sale Transactions Quiz

Test your understanding of hire purchase and installment sale transactions with this quiz. Practice journalizing entries, learn accounting methods, and improve your knowledge of the salient features and nature of hire purchase transactions.

Created by
@PlentifulNarwhal

Questions and Answers

What is the main difference between the Hire Purchase System and the Installment System?

Ownership of the goods is transferred after payment of outstanding balance in Hire Purchase, but on the date of delivery in Installment System

What is the key feature of Hire Purchase transactions?

Ownership of the goods is transferred after payment of outstanding balance

How does the Installment System differ from the Hire Purchase System in terms of ownership transfer?

Ownership is transferred after payment of outstanding balance in Hire Purchase, but on the date of delivery in Installment System

What happens to the ownership of goods in Hire Purchase transactions?

<p>Transferred after payment of outstanding balance</p> Signup and view all the answers

In Hire Purchase, when is the ownership of the goods transferred?

<p>After payment of outstanding balance</p> Signup and view all the answers

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