[amp_mcq option1=”Hire purchase price” option2=”Cash price” option3=”Cost price of the seller” option4=”None of the above” correct=”option1″]<\/p>\n
The correct answer is: A. Hire purchase price<\/strong><\/p>\n Hire purchase is a type of financing agreement in which the buyer agrees to pay for an asset in installments over a period of time. The hire purchase price is the total amount that the buyer will pay for the asset, including interest.<\/p>\n The hire purchase assets account is a ledger account that is used to record the purchase of assets on hire purchase. The account is debited with the hire purchase price of the asset and credited with the cash payments made by the buyer. The balance on the account represents the outstanding amount that the buyer owes on the asset.<\/p>\n The cash price is the price of an asset that is paid in full at the time of purchase. The cost price of the seller is the price that the seller paid for the asset.<\/p>\n In the case of hire purchase, the hire purchase price is the amount that is debited to the hire purchase assets account. The cash price and the cost price of the seller are not relevant in this case.<\/p>\n","protected":false},"excerpt":{"rendered":" [amp_mcq option1=”Hire purchase price” option2=”Cash price” option3=”Cost price of the seller” option4=”None of the above” correct=”option1″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[85],"tags":[],"class_list":["post-55144","post","type-post","status-publish","format-standard","hentry","category-accounting","no-featured-image-padding"],"yoast_head":"\n