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    Question

    With respect to hire purchase and installment sale

    transactions, which of the following statement is incorrect?
    A Under hire purchase system, hire purchaser will pay cost of purchased asset in installments Correct Answer Incorrect Answer
    B Under hire purchase system, the ownership of the goods will be transferred by the hire vendor after payment of down payment (i.e. before first installment) Correct Answer Incorrect Answer
    C Under installment system, ownership of the goods is transferred by owner on the date of delivery of goods Correct Answer Incorrect Answer
    D Depreciation on hire purchased asset is claimed by hire purchaser Correct Answer Incorrect Answer

    Solution

    The correct answer is B

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