Untitled Quiz

The original price of an item without any interest or financing charges.

A portion of the total cost paid upfront to reduce the loan amount.

The amount paid in regular intervals over a period of time, usually for a loan or purchase.

The extra amount charged for borrowing money or financing a purchase.

The sum of the cash price and the total interest charged over the period of installments.

Determining the total interest charged by subtracting the cash price from the total payable amount.

The total amount paid over the duration of installments for a 3-year period

Calculated by subtracting the interest from the total amount payable.

A system where ownership of goods remains with the seller until the buyer pays the full amount.

A system where ownership of goods is transferred to the buyer immediately upon signing the agreement.

Ownership is retained by the seller until the buyer fulfills the payment.

Ownership immediately passes to the buyer.

Failure by the buyer to make the scheduled payments of the installment system.

Seller can pursue legal action to reclaim unpaid amounts, but they cannot repossess the goods.

These purchase methods differ in buyer ownership of the product during payment.

Agreement of sale.

A payment system where ownership of goods remains with the seller until the buyer completes payments.

A payment system where ownership of goods transfers to the buyer immediately upon agreement.

The hirer (buyer) has the right to sell or exchange the goods before ownership transfer.

The buyer has rights to sell or exchange, but the seller can legally reclaim the payment when in arrears.

Failure of the hirer to make agreed-upon payments in a hire purchase arrangement.

Failure of the buyer to make agreed-upon payments in an installment purchase arrangement.

Both parties can end the agreement and return the goods in a hire purchase transaction according to the conditions.

The agreement cannot be terminated unilaterally in an installment purchase unless otherwise specified during the agreement.

Accounts prepared for individual departments within a large business to determine their profitability and efficiency.

Determining profit/loss per department, assessing department efficiency, creating new policies, identifying unprofitable departments, increasing overall business profits, measuring departmental profitability, comparing departmental results, allowing manager commissions based on profits.

A business with multiple departments under one management.

A report used to compare the trading activities of each department.

A section of a large business.

Insurance Companies are a good example where these accounts are applicable.

The profit or loss and efficiency of a specific department.

The difference between the revenue and expenses generated by a particular department.

A business relationship where two or more individuals agree to share profits in accordance with a set agreement.

The law governing partnerships in India.

A partnership results from an agreement between parties, which could be expressed or implied, to share profits from a business venture.

A partner who actively participates in the business's daily operations.

A partner not actively involved in the business's daily operations.

Partners are both agents and principals to each other.

A partnership needs at least two people to operate, though banking partnerships have a maximum limit.

The formal name under which a partnership business operates.

A temporary account used to record adjustments during the admission of a new partner, like changes in asset values or goodwill.

When a new partner joins an existing firm, often with specific capital contributions and profit sharing arrangements.

The value attributed to the reputation and established relationships of an existing business.

Records the initial investment and subsequent changes in a partner's stake in the firm.

Decreasing the value of stock by a specified percentage.

A decrease in the value of furniture.

A provision for potential bad debts for customers who can't pay.

Increase in the value of a building.