[amp_mcq option1=”Payment of purchase price is made in agreed installments” option2=”On default of payment of installment, seller has a right to take back the goods” option3=”Purchaser prepares Assets Account, Seller’s Account and Interest Suspense Account in his books” option4=”Purchaser has right to sell the asset at any time after receiving the delivery” correct=”option4″]
The correct answer is D. Purchaser has right to sell the asset at any time after receiving the delivery.
In an installment payment system, the buyer agrees to pay the purchase price in a series of installments over time. The seller retains ownership of the goods until the final installment is paid, at which point the title to the goods transfers to the buyer. This means that the buyer does not have the right to sell the asset until the final installment is paid.
Option A is true because the purchase price is paid in agreed installments. Option B is true because the seller has a right to take back the goods if the buyer defaults on the payments. Option C is true because the purchaser prepares Assets Account, Seller’s Account and Interest Suspense Account in his books.
I hope this helps! Let me know if you have any other questions.